Why Reddit Stock Is Surging Today
Shares of Reddit (NYSE: RDDT) soared to the skies on Wednesday. The news aggregator and social forum operator reported fantastic results in the third quarter of 2024, lighting a fire under the stock. Share prices rose as much as 43.1% on the news, settling down to a slightly milder 40% gain by noon ET. All told, the stock has gained 146% since joining the public stock market seven months ago.
Your average Wall Street analyst expected a loss of $0.23 per share on revenues near $313 million. Reddit blew those estimates out of the water. Sales jumped 68% year over year, landing at $348 million. The bottom line swung from a net loss of $0.13 to positive earnings of $0.16 per diluted share.
Reddit's active user counts surged 51% higher in the U.S. and 44% higher in international markets. Average revenue per user (ARPU) increased by mid-teen percentages around the world. These separate improvements added up to a 56% boost to worldwide ad sales.
Source Fool.com
