---
title: "Why Reddit Stock Is Skyrocketing Today"
description: "Reddit's stock surged 21.1% despite a broader market decline, driven by strong Q2 results that exceeded expectations. The company reported earnings per share of $0.45 on revenue of $500 million, signi"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/251232981.md"
published_at: "2025-08-01T16:17:30.000Z"
---

# Why Reddit Stock Is Skyrocketing Today

> Reddit's stock surged 21.1% despite a broader market decline, driven by strong Q2 results that exceeded expectations. The company reported earnings per share of $0.45 on revenue of $500 million, significantly beating analyst estimates. Daily active users increased by 21% year-over-year, reaching 110 million. Reddit's guidance for the current quarter suggests sales between $535 million and $545 million, indicating 55% year-over-year growth. The company is also benefiting from momentum in artificial intelligence, positioning it for continued strong performance.

**Reddit** (RDDT 20.93%) stock is surging Friday despite strong bearish pressures shaping the broader market. The company's share price was up 21.1% as of 11:40 a.m. ET. At the same point in the day's trading, the **S&P 500** was down 1.7%, and the **Nasdaq Composite** had fallen 2.2%.

While the broader market is seeing big sell-offs in response to a weaker-than-expected July jobs report, Reddit is enjoying huge valuation gains on the heels of its recent second-quarter report. In addition to beating sales and earnings targets for the period, the company also issued very strong forward guidance.

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.

### Related Stocks

- [RDDT.US - Reddit](https://longbridge.com/en/quote/RDDT.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Reddit Q4 ad revenue rises 75% to USD 690 million | Reddit Inc. reported a 70% year-over-year increase in Q4 revenue, reaching USD 726 million, with ad revenue rising 75% t | [Link](https://longbridge.com/en/news/275030535.md) |
| Alexis Ohanian Launched Reddit In 2005, Now He Owns Competitor Digg: Should RDDT Stock Investors Be Worried? | Reddit co-founder Alexis Ohanian has relaunched Digg, a competitor to Reddit, which could pose challenges for Reddit's s | [Link](https://longbridge.com/en/news/272771707.md) |
| Reddit forecasts revenue above estimates as AI fuels ad sales | Reddit forecasts first-quarter revenue between $595 million and $605 million, exceeding Wall Street's estimate of $577.2 | [Link](https://longbridge.com/en/news/275030273.md) |
| AI cloud startup Runpod hits $120M in ARR — and it started with a Reddit post | Runpod, an AI app hosting platform, has achieved a $120 million annual revenue run rate. Founded by Zhen Lu and Pardeep  | [Link](https://longbridge.com/en/news/272887880.md) |
| 15,823 Shares in Reddit Inc. $RDDT Purchased by Tanager Wealth Management LLP | Tanager Wealth Management LLP acquired 15,823 shares of Reddit Inc. (NYSE:RDDT) valued at approximately $3.64 million du | [Link](https://longbridge.com/en/news/272153025.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.