Social media platform, Reddit Inc. (NYSE: RDDT) is seeing strong commercial intent across its iconic comment threads, and it's now turning that engagement into ad revenue as part of a broader monetization push.
Wall Street experienced a positive momentum as the S&P 500 marked its eighth consecutive day of gains on Thursday, climbing 0.6% to 5,604.14. This rally helped the index recover from losses incurred due to trade tariffs announced by President Donald Trump.
Online community and discussion platform Reddit (NYSE:RDDT) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 61.5% year on year to $392.4 million. On top of that, next quarter’s revenue guidance ($420 million at the midpoint) was surprisingly good and 6.6% above what analysts were expecting. Its GAAP profit of $0.13 per share was significantly above analysts’ consensus estimates.
Reddit shares are trading lower by some 9.6% during Wednesday's session. Snap's sharp stock fall Wednesday following its first-quarter earnings is weighing on peer platforms.
MrBeast sparked backlash after joking about a "100 men vs. gorilla" fight on Elon Musk's X platform, prompting PETA to criticize him for using animals in his content.
Even during a down period for the markets, Reddit has gone against the grain, climbing to $107.51. Its shares have yielded a 38.4% return over the last six months, beating the S&P 500 by 45.3%. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible."
His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
The majority of impacted users were those utilizing Reddit’s official desktop website and mobile apps for iOS and Android smartphones, with the mobile interface remaining functional throughout.
Large-cap stocks had poor performance last week, including UnitedHealth Group, Global Payments, Applovin, Humana, DaVita, Meta Platforms, Yum China, CoreWeave, Burlington Stores, Super Micro Computer, and GlobalFoundries.
