Reddit Users See An 'Inverse Moment' As Shares Pop 14% On Social Media Platform's Financial Performance
Portfolio Pulse from Surbhi Jain
Reddit Inc (NYSE:RDDT) shares surged 14% after its first quarterly earnings post-IPO showed a loss per share better than expected and a 48% revenue increase year-over-year. Despite a net loss of $575.1 million mainly due to IPO-related expenses, the company's ad revenue growth and potential in AI licensing were highlighted as key growth drivers. The discussion on Reddit also touched on the platform's use of user data for AI training and the skepticism about its future profitability.
May 08, 2024 | 7:05 pm
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Reddit Inc's shares surged 14% following its first quarterly earnings report since its IPO, with revenue exceeding expectations and significant growth in ad revenue.
The positive reaction in Reddit Inc's stock price is directly attributed to its better-than-expected quarterly earnings report. The 14% surge reflects investor optimism about the company's revenue growth and potential profitability, despite the current net loss which is largely attributed to IPO-related expenses. The interest in Reddit's AI licensing and innovative monetization strategies further bolster the positive outlook.
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IMPORTANCE 90
RELEVANCE 100