Reddit Defies Gravity: Stock Soars 17% While Markets Implode

Wall Street bleeds, but Reddit laughs all the way to the bank.

While traditional investors panic-sell, the meme-stock darling rockets upward—proving once again that internet culture moves faster than hedge fund algorithms.

Who needs fundamentals when you've got diamond-handed degenerates?

JUST IN:$1.11 trillion wiped out from US stock market today. pic.twitter.com/F82IKy2lxJ

Why Is Reddit Stock Rising While The Stock Market Is Falling?

Reddit’s big gains follow a healthy quarterly earnings report with more users on the social media platform. According to the report, the company earned $500 million in revenue, beating the forecast of $426 million. The company’s earnings have risen by a whopping 78% from just one year ago.

CEO and co-founder Steve Huffman noted that the last three months were the most profitable quarter for the company in its history. RDDT’s price increased by 15% at Friday’s open. The price surge led to the stock reclaiming its year-to-date losses in one swift move.

While Reddit’s stock price rises, the larger market has faced quite a dip over the last few days. The dip is likely due to President Trump’s tariffs. The new tariffs announcement has hit every major US trade partner. The market crash was further affected by the worse-than-expected July jobs report. RDDT is one of the few stocks that was in the green zone following the selloff.

The US government’s recent tax and spending bill will add trillions to the already skyrocketing US debt. The development has led to many investors distancing themselves from the US market. We could see investments in US dollar-based assets fall over the coming months. Tariffs seem to have cast another big shadow on the performance of the US market. How things unfold over the coming weeks is yet to be seen.