Reddit leads social media stocks higher after company posts first profit since IPO

Published On Oct 30, 2024, 3:04 PM

Reddit's stock surged over 40% following its report of the first profit since going public. The company reported a 68% increase in quarterly revenue, reaching $348 million, and announced a net profit of $30 million. The results exceeded expectations, with advertising revenue rising significantly, driven by increased user activity and AI licensing deals with major tech firms. As a result, analysts have raised their price targets for Reddit's stock, anticipating continued growth in ad revenue. Other social media stocks like Snap also saw gains due to positive advertising trends.