Reddit Stock Soars: The Unstoppable Rally Explained (August 2025)

Reddit's stock isn't just climbing—it's defying gravity. Here's why the meme-fueled platform is suddenly Wall Street's darling.

The Short Squeeze 2.0 Effect

Retail traders are piling in again, turning r/WallStreetBets into a launchpad. This time, they're armed with AI sentiment tools and crypto-level leverage.

Ad Revenue on Steroids

Brands finally cracked the code on monetizing chaos—sponsored AMAs and NFT collectibles are printing money. Because nothing sells like digital scarcity and influencer endorsements.

The Crypto Connection

Rumors swirl about Reddit integrating Ethereum tipping and community tokens. Because if there's one thing better than karma points, it's karma points you can trade for actual money.

Wall Street analysts scramble to justify valuations while secretly refreshing their Robinhood apps. Some things never change—especially the smell of FOMO in the morning.

Image source: Getty Images.

Reddit stock surges as Q2 results crush expectations

Reddit's Q2 report arrived with plenty for investors to be excited about. The company posted earnings per share of $0.45 on revenue of $500 million, crushing the average analyst estimate's call for per-share earnings of $0.19 on sales of $426 million. Revenue was up roughly 78% year over year in the quarter, and daily active users on its platform rose 21% year over year to reach 110 million. Even better, it seems strong momentum is poised to continue in the NEAR term.

What's next for Reddit?

Reddit is guiding for sales to come in between $535 million and $545 million in the current quarter -- good for growth of roughly 55% year over year at the midpoint of the guidance range. Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) is projected to be between $185 million and $195 million -- improving from $94.1 million in last year's quarter.

While Reddit is pivoting away from its focus on driving growth through the user economy, the company is seeing some very strong tailwinds connected to artificial intelligence (AI). CEO Steve Huffman noted that Reddit continues to be the "most cited domain for AI across all models," and the company could continue to post very strong results and crush expectations if that tailwind holds.