Core Insights - Reddit's stock surged over 21%, reaching a five-month high of $194.33 [1] - The company reported a 78% increase in Q2 revenue to $500 million, marking the fastest growth in three years and exceeding Wall Street's expectations of $425 million [1] - Adjusted earnings per share were $0.92, surpassing the forecast of $0.72, with net profit reaching $89 million, more than double the analyst average estimate of $36 million [1] - For Q3, Reddit expects sales between $535 million and $545 million, with the midpoint exceeding Wall Street's average estimate of $473 million [1]

Core Insights - Reddit's stock surged over 17% in after-hours trading, reaching $188.34 [1] - The company reported a 78% year-over-year revenue increase to $500 million, exceeding analyst expectations of $426 million [1] - Reddit achieved a net profit of $89 million, a significant turnaround from a loss of $10 million in the same period last year [1] - Adjusted earnings per share were $0.45, surpassing the analyst forecast of $0.19 [1] - Global daily active users reached 110.4 million, a 21% year-over-year growth, slightly above the expected 109 million [1] Revenue and Profit Outlook - For Q3, Reddit anticipates revenue between $535 million and $545 million, with the midpoint exceeding market expectations of $473 million [1] - The company projects core profit (EBITDA) to be between $185 million and $195 million, compared to the market expectation of $160 million [1]

Group 1 - Reddit Inc's stock is under pressure, down 5% to $107.52 after Wells Fargo downgraded it to "equal weight" from "overweight" and reduced its price target from $168 to $115, citing potential permanent disruptions in search traffic due to Google's AI-integrated search [1] - Despite a 30.7% year-to-date deficit, 15 out of 23 analysts still rated Reddit as a "buy" or better, with an average 12-month price target of $160.36, indicating a 41.6% premium to the recent close and suggesting potential for downward revisions [2] - The stock has seen a significant downtrend, down 45.3% over the last three months, and is on track for a third consecutive daily loss, with the $100 level potentially serving as a short-term support [4] Group 2 - Options traders are experiencing a shift in sentiment, as Reddit's 10-day call/put volume ratio of 4.07 ranks in the 100th percentile of annual readings, indicating a rapid increase in call options [3] - The 20-day moving average has turned into resistance, complicating upward movement for the stock, with several trendlines positioned overhead [4]

Group 1 - Reddit Inc. reported $392.36 million in revenue for Q1 2025, a year-over-year increase of 61.5% [1] - The EPS for the same period was $0.13, down from $0.29 a year ago, with a surprise of +550.00% compared to the consensus estimate of $0.02 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $372.09 million by +5.45% [1] Group 2 - Reddit Inc. shares returned +6.5% over the past month, while the Zacks S&P 500 composite decreased by -0.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3] Group 3 - Daily Active Uniques (DAUq) globally reached 108.1 million, surpassing the average estimate of 107.2 million [4] - Average Revenue Per User (ARPU) globally was $3.63, exceeding the estimate of $3.49 [4] - DAUq in the U.S. was 50.1 million, slightly below the estimate of 50.53 million, while international DAUq was 58 million, above the estimate of 56.63 million [4] - U.S. ARPU was $6.27, higher than the estimate of $5.84, while international ARPU was $1.34, above the estimate of $1.28 [4] - Logged-out DAUq globally was 59.4 million, exceeding the estimate of 58.94 million [4] - Total revenue from international markets was $78.50 million, surpassing the estimate of $73.08 million, while U.S. revenue was $313.90 million, above the estimate of $300.24 million [4]