Reddit Shares Jump 7.5% on 78% Revenue Growth 26th in $3.3B Trading Volume Surge

On July 31, 2025, Reddit (RDDT) surged 7.54% with a trading volume of $3.31 billion, a 321.6% increase from the previous day, ranking 26th in market activity. The stock’s performance followed the release of its Q2 2025 financial results, which highlighted a 78% year-over-year revenue growth to $500 million and a net income of $89 million, marking a shift from a $10 million net loss in the prior-year period. Daily active users rose 21% to 110.4 million, with international user growth accelerating at 32%, driven by machine translation capabilities supporting 23 languages.

Reddit’s advertising revenue, its primary income source, jumped 84% year-over-year to $465 million, fueled by higher impressions and pricing. The platform also reported a 90.8% gross margin, up from 89.5% in Q2 2024, and $167 million in adjusted EBITDA, a 33% margin. Strategic initiatives focused on enhancing search functionality and international expansion were underscored, with Reddit noting its role as the “most cited domain for AI across all models.”

Analysts at Zacks highlighted that Reddit’s recent earnings beat expectations four times in the past four quarters. The stock’s near-term outlook was categorized as a Zacks Rank #3 (Hold), suggesting alignment with market performance. While the company’s year-to-date underperformance contrasts with the S&P 500’s 8.2% gain, positive revisions to earnings estimates and improved industry positioning in the top 30% of Zacks-ranked sectors could support future momentum.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day has delivered a 166.71% return from 2022 to July 30, 2025, significantly outperforming the benchmark return of 29.18%. This approach achieved an excess return of 137.53%, reflecting its effectiveness in capturing momentum-driven market shifts and leveraging high-liquidity assets.