Reddit Trading Volume Surges to $893 Million, Ranks 99th Despite Stock Price Decline

On April 30, 2025, Reddit (RDDT) experienced a significant surge in trading volume, reaching $893 million, marking a 95.8% increase from the previous day. This surge placed Reddit at the 99th position in terms of trading volume for the day. However, despite the high trading volume, Reddit's stock price declined by 4.56%.

Reddit is scheduled to release its first-quarter earnings on May 1, 2025. Analysts anticipate earnings per share (EPS) of $0.51, representing a 106.2% year-over-year increase, and revenue of $369.68 million, a 52.1% year-over-year growth. The company's business model has been criticized for its inefficient cost structure.

In the previous quarter, Reddit exceeded analysts' revenue expectations by 4.6%, reporting revenues of $427.7 million, up 71.3% year over year. The company reported 48 million daily active users, a 31.9% year-over-year increase. Analysts expect Reddit's revenue to grow 52.1% year over year to $369.5 million in the current quarter, improving from the 48.4% increase recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.

Reddit has a history of exceeding Wall Street's expectations, beating revenue estimates every single time since going public by 10.1% on average. However, some investors view Reddit as a risky investment ahead of earnings due to rising competition and a premium valuation. The company's annual revenue growth of 38.9% over the last three years indicates a rising market share, but the upcoming earnings report may bring further disappointment, with earnings expected at $0.03 per share, down 90% from the previous year.