Here’s Why Reddit Stock Is Soaring Premarket Today

Reddit’s (RDDT) stock jumped in Friday’s early premarket session after the community-based social-networking company reported forecast-beating results and issued strong guidance.

On Stocktwits, retail sentiment toward Reddit stock improved to ‘extremely bullish’ (89/100) by early Friday from ‘bullish’ a day ago. The message volume perked up to ‘extremely high’ levels.

A bullish watcher who missed the boat said they should have been all in the stock.

Another user said the stock could easily hit $200.

San Francisco, California-based Reddit reported a profit of $0.48 in the second quarter of fiscal year 2025, reversing from a loss of $0.06 a year ago. Revenue climbed 78% year over year (YoY) to $500 million, with ad revenues jumping a steeper 84% to $465 million.

The results exceeded the Fiscal.ai-compiled consensus estimates of $0.19 and $425.97 million, respectively.

Reddit co-founder and CEO Steve Huffman said, “We’re focused on growing globally, scaling sustainably, and making Reddit the most trusted place on the internet.”

On the earnings call, Huffman said the 21% YoY growth in second-quarter daily active users to 110 million was driven mainly by product improvements and increased marketing activity, according to a transcript compiled by Koyfin.

CFO Jennifer Wong said the ongoing investments in Reddit's ad models and formats are driving performance improvements, including higher click and conversion volume and incremental return on ad spend.

Looking ahead, Reddit is guiding to third-quarter revenue in the range of $535 million to $545 million and adjusted earnings before interest, taxes, depreciation, and amortization in the range of $185 million to $195 million. The revenue guidance was sharply higher than the $476.53 million consensus estimate.

Reddit stock is down 1.7% this year. 

In Friday’s early premarket session, the stock soared nearly 14% to $183.25. The stock peaked ahead of Trump’s April 2 “Liberation Day” tariffs, hitting an all-time high of $230.41 on Feb.10.

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