Shares of online community and discussion platform Reddit (NYSE:RDDT) jumped 13.7% in the afternoon session after the company reported third-quarter results that significantly beat Wall Street's expectations and provided a strong forecast for the fourth quarter. The social media company's revenue rose 67.9% year-over-year to $584.9 million, surpassing analysts' estimates of $550.4 million. Earnings also impressed, coming in at $0.80 per share, well above the $0.52 that experts had predicted. This growth was supported by a massive 141% year-over-year increase in domestic daily active visitors, which reached 116 million. Looking ahead, the company projected fourth-quarter revenue of around $660 million, also above market expectations. Following the strong report, Wall Street sentiment was positive, as the company's results and optimistic guidance showcased strong business momentum.
Reddit shares are trading higher Friday after the company reported better-than-expected third quarter financial results and issued fourth quarter sales guidance above estimates. Also, the company reported a year-over-year increase in Q3 Daily Active Uniques.
Online community and discussion platform Reddit (NYSE:RDDT) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 67.9% year on year to $584.9 million. On top of that, next quarter’s revenue guidance ($660 million at the midpoint) was surprisingly good and 3.3% above what analysts were expecting. Its GAAP profit of $0.80 per share was 54.3% above analysts’ consensus estimates.
On Thursday, major U.S. indexes closed lower, with the Dow Jones Industrial Average slipping 0.2% to 47,522.12, the S&P 500 falling nearly 1% to 6,822.34.
Online community and discussion platform Reddit (NYSE:RDDT) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 67.9% year on year to $584.9 million. On top of that, next quarter’s revenue guidance ($660 million at the midpoint) was surprisingly good and 3.3% above what analysts were expecting. Its GAAP profit of $0.80 per share was 53.8% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the release of a cooler-than-expected inflation report fueled optimism for a potential interest rate cut from the Federal Reserve. The September Consumer Price Index (CPI) indicated a 3.0% year-over-year rise, slightly below the 3.1% forecast. Investors viewed this as a positive sign that inflation is moderating, increasing the probability of a more accommodative monetary policy from the central bank. A potential rate cut is seen as a significant catalyst for the tech sector, as lower borrowing costs can enhance profitability and encourage companies to reinvest in growth and innovation. This renewed confidence was reflected in the market's broad gains, with technology and semiconductor stocks leading the charge.
Amazon.com Inc.'s (NASDAQ: AMZN) cloud unit AWS has issued an apology and outlined an explanation for the major outage that affected over 1,000 websites and services on Monday.
