Reddit Q2 Beats Across the Board, Yet Shares Slide 5% After-Hours
RDDT sits 30% above its 52-week low of $119.27 on elevated volume (2.2× avg).
Summary
Reddit delivered a standout Q2: EPS of $1.25 crushed the $0.95 consensus, revenue surged 61% YoY to $804.9M, and user metrics hit new highs with DAUq up 18% to 130.3M and WAUq crossing half a billion. Gross margin expanded to 91.3%, and adjusted EBITDA more than doubled to $343M. Despite the beats, the stock fell 5% after-hours, signaling that lofty expectations were already priced in or that guidance disappointed. The sell-off follows a pattern of insider selling by the CEO and COO in recent weeks, which may be weighing on sentiment. With eight straight quarters of 60%+ revenue growth, the market's reaction raises the bar for what Reddit must deliver to sustain its premium valuation.
At the time of this announcement, RDDT was trading at $155.00 on NYSE in the Technology sector, with a market capitalization of approximately $34.3B. The 52-week trading range was $119.27 to $282.95. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.