Shares of online community and discussion platform Reddit (NYSE:RDDT) jumped 5.1% in the afternoon session after the company continued to rally on strong investor sentiment following its stellar second-quarter earnings report and optimistic future guidance. Last week, the social media platform posted revenue of $500 million, a 78% year-over-year surge that crushed analyst forecasts. Growth extended to its user base, as daily active unique visitors climbed 21%. The company also collected 47% more revenue per user. Following the results, Reddit issued an optimistic third-quarter revenue forecast, which prompted numerous Wall Street analysts to lift their price targets for the stock.
Quality compounders are flywheels.
Said differently, they’re businesses that generate heaps of profits and consistently reinvest them to produce even more profits.
Rinse and repeat.
Amazon’s shares were down more than 8% in Friday’s midday session after the Amazon Web Services cloud unit’s second-quarter performance and third-quarter guidance disappointed Wall Street.
Shares of online community and discussion platform Reddit (NYSE:RDDT) jumped 22.1% in the morning session after the company posted record-breaking second-quarter revenue and provided a strong forecast for the upcoming quarter. The social media platform's revenue jumped 78% year-over-year to $500 million, soundly beating Wall Street's expectations. Earnings per share landed at $0.45, more than doubling the forecasted amount. The company's user base also expanded, with daily active users growing 21% to 110.4 million. This performance was fueled by an 84% surge in advertising revenue and growth from data licensing deals. Looking ahead, Reddit projected third-quarter revenue well above consensus estimates, prompting analysts at Morgan Stanley to raise their price target on the stock.
Reddit shares are trading higher Friday after the company reported better-than-expected second quarter financial results and issued third quarter sales guidance above estimates on Thursday after the market closed.
Shares of Reddit Inc (NYSE: RDDT) surged on strong Q2 results and upbeat guidance, with analysts noting increased user traction and potential for profitability by 2025.
As we await the opening of the US market on Friday, let's delve into the pre-market session and discover the top gainers and losers shaping the early market sentiment.
