Reddit Surges Despite Slipping to Fifth on WSB List as Shares Hit Historic High

Reddit, recently ranked fifth on the WSB list, down two spots from yesterday. Over the past two days, Reddit (RDDT) shares have surged by 41.97%, achieving a historic intraday high as the social media firm continues its upward momentum.

Reddit recently showcased robust performance as the company reported impressive third-quarter achievements, surpassing market expectations in revenue, user growth, and profitability. These strong results caused the company’s shares to spike over 20% in after-hours trading, affirming Reddit's growing presence in the social media landscape.

With an expanding user base, Reddit's third-quarter revenue rose by 68%, reaching $348.4 million. The success was driven primarily by the platform's increase in daily active users (DAU), which jumped 47% year-on-year to approximately 97.2 million, boosting the company's ad revenue significantly.

Reddit has increasingly focused on international growth by implementing machine learning-driven translation features, expanding its reach to non-English speaking users, which contributed to nearly 40% annual growth in international user numbers and revenue.

In terms of future prospects, Reddit plans to expand its translation capabilities further, aiming to cater to more than 30 countries by 2025. This strategic move aims to enhance Reddit’s relevance in global markets and drive more natural traffic to its platform.

Additionally, Reddit is exploring new revenue streams such as data licensing and developing an e-commerce ecosystem for users, alongside traditional advertising space sales. The company’s profitability also draws attention, with adjusted EBIDTA turning positive, marking an essential milestone in its financial journey.

As Reddit continues to refine its offerings and expand globally, the company remains well-poised to maintain its growth trajectory, captivating users with its unique community-driven content model.