After the wildfires — lessons on being prepared | SaltWire #wildfire #novascotia #thinkingoutoud - Reddit shares soared 14% on Wednesday after the social media firm floored investors with strong revenue growth and improving profitability in the first earnings since its market debut.
"We suspected that Reddit would come out strong out of the gates, and Reddit exceeded our bullish expectations," Bernstein analyst Mark Shmulik said in a client note. Several analysts have said that despite being founded in 2005, Reddit was still in early stages of the process to generate ad revenue and should benefit in the coming quarters from expanded ad targeting and measurement tools, among others.
Reddit, whose valuation is much smaller than rivals such as Meta Platforms, was on track to increase its market capitalization by more than $1 billion to more than $9 billion based on its premarket share price of $56.97.