Reddit Shares Surge on Strong Earnings and Optimistic Forecast
Reddit's stock soared 12% in after-hours trading following a stellar third-quarter earnings report. The social media giant posted $0.80 EPS, eclipsing the $0.51 analyst consensus, while revenue surged 68% year-over-year to $585 million. Net income skyrocketed to $163 million from $30 million a year prior.
The company's fourth-quarter revenue guidance of $655–$665 million exceeded Wall Street expectations, signaling sustained momentum. Gross margins expanded to 91%, reflecting improving profitability as Reddit capitalizes on its growing user base of 416 million weekly active users.
This marks Reddit's seventh consecutive quarterly beat since its 2024 IPO, demonstrating the platform's successful monetization strategy. The results underscore how digital platforms are leveraging engaged communities to drive financial performance in today's attention economy.
