Reddit Shares Surge Over 21% In Wednesday Premarket: What's Going On?
Portfolio Pulse from Benzinga Neuro
Reddit Inc. (NYSE:RDDT) saw a 21.56% surge in pre-market trading after reporting better-than-expected Q3 financial results. The company reported earnings of 16 cents per share and revenue of $348.4 million, surpassing analyst expectations. Most revenue came from advertising, with additional income from data licensing deals with Alphabet Inc. and OpenAI.
October 30, 2024 | 12:15 pm
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POSITIVE IMPACT
Alphabet Inc. benefits from a content licensing agreement with Reddit, valued at $60 million annually, allowing the use of Reddit's content for AI model training.
The content licensing agreement with Reddit enhances Alphabet's AI model training, potentially improving its AI products and services, which is positive for the company.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Alphabet Inc. benefits from a content licensing agreement with Reddit, valued at $60 million annually, allowing the use of Reddit's content for AI model training.
The content licensing agreement with Reddit enhances Alphabet's AI model training, potentially improving its AI products and services, which is positive for the company.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Reddit Inc. shares surged over 21% in pre-market trading following strong Q3 results, with earnings and revenue surpassing expectations. Key partnerships with Alphabet and OpenAI contributed to revenue growth.
Reddit's better-than-expected earnings and revenue, along with strategic partnerships, have positively impacted investor sentiment, leading to a significant pre-market stock price increase.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100