{"id":44844,"date":"2025-11-01T11:36:04","date_gmt":"2025-11-01T11:36:04","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/01\/reddit-stock-surges-12-after-beating-q3-estimates-and-forecasting-strong-ad-growth\/"},"modified":"2025-11-01T11:36:04","modified_gmt":"2025-11-01T11:36:04","slug":"reddit-stock-surges-12-after-beating-q3-estimates-and-forecasting-strong-ad-growth","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/01\/reddit-stock-surges-12-after-beating-q3-estimates-and-forecasting-strong-ad-growth\/","title":{"rendered":"Reddit stock surges 12% after beating Q3 estimates and forecasting strong ad growth"},"content":{"rendered":"
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Reddit shares jumped more than 12% on Friday after the social media company posted third-quarter results that exceeded Wall Street estimates and delivered an upbeat outlook for the current quarter. <\/p>\n

The company\u2019s revenue surged 68% from a year earlier to $585 million, topping the LSEG consensus estimate of $546 million. <\/p>\n

Earnings per share came in at 80 cents, well ahead of analysts\u2019 expectations of 51 cents.<\/p>\n

The strong performance was driven by broad-based advertising growth and continued expansion in Reddit\u2019s active advertiser base. <\/p>\n

The company reported that nine of its top 15 advertiser verticals grew more than 50% year-over-year, underscoring strong momentum across key markets. <\/p>\n

Reddit\u2019s outlook for the fourth quarter also exceeded forecasts. <\/p>\n

The company projects revenue between $655 million and $665 million, higher than Wall Street\u2019s consensus estimate of $638 million. <\/p>\n

Management expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to range from $275 million to $285 million in the December quarter.<\/p>\n

According to Morgan Stanley analyst Brian Nowak, the results reflect Reddit\u2019s \u201ccontinued progress across its ad and platform initiatives,\u201d with a \u201clong runway for growth\u201d in both attracting new advertisers\u2014up 75% year-over-year in the third quarter\u2014and expanding ad spending from existing clients.<\/p>\n

User growth and engagement trends<\/h2>\n

Reddit\u2019s daily active users climbed 19% year-over-year to 116 million, surpassing Wall Street\u2019s projection of 114 million. <\/p>\n

The company attributed the growth in part to new users arriving from Google searches and increased engagement among logged-in users, who tend to generate higher advertising revenue. <\/p>\n

Globally, logged-in users rose 14% to 50.2 million.<\/p>\n

However, user growth showed signs of moderation compared with the previous quarter. <\/p>\n

Daily active unique users increased 7% to 23.1 million from a year earlier, below the 12% growth recorded in the second quarter. <\/p>\n

The company acknowledged the potential impact of AI-powered search tools, such as ChatGPT and Google\u2019s AI Overview, on user acquisition but noted that the effect so far has been limited.<\/p>\n

\u201cI\u2019m looking forward to continuing to work on these things with these partners, but they\u2019re not a major traffic driver today,\u201d said CEO Steve Huffman during the earnings call. <\/p>\n

\u201cBut I think there\u2019s plenty of opportunity there as we continue to work together.\u201d<\/p>\n

AI partnerships and market performance<\/h2>\n

While advertising remains Reddit\u2019s main source of revenue, the company has been expanding its data licensing business. <\/p>\n

\u201cOther revenue,\u201d which includes licensing deals with Google and OpenAI to train their generative AI models, rose 7% year-over-year to $36 million. <\/p>\n

Reddit has also introduced its own generative AI feature, Reddit Answers, which uses content from its vast communities to provide contextualized responses to user queries.<\/p>\n

Following the strong results, Reddit\u2019s stock climbed as much as 18.7% on Friday to $230.97. <\/p>\n

The stock is now up around 33% in 2025, far outperforming the S&P 500\u2019s 16% gain. <\/p>\n

Despite the recent rally, shares remain about 23% below their all-time high of $282.95 reached in mid-September.<\/p>\n

Overall, Reddit\u2019s better-than-expected quarterly performance and improved advertising metrics suggest that the company is gaining traction with marketers while continuing to strengthen user engagement and diversify revenue through AI-related partnerships.<\/p>\n

The post Reddit stock surges 12% after beating Q3 estimates and forecasting strong ad growth<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Reddit shares jumped more than 12% on Friday after the social media company posted third-quarter results that exceeded Wall Street estimates and delivered an upbeat outlook for the current quarter. The company\u2019s revenue surged 68% from a year earlier to $585 million, topping the LSEG consensus estimate of $546 million. Earnings per share came in <\/p>\n","protected":false},"author":1,"featured_media":44845,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44844","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44844"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44845"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}