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Reddit stock price soars after social media player reports profit milestone
Reddit’s stock price is surging after the social media player notched its first profit in the company’s nearly 20-year history.
Reddit on Tuesday reported net income of nearly $30 million for the third quarter, while its revenue of $348.4 million for the period topped analyst forecasts. Those figures were up from a loss of $7.4 million on sales of $207.5 million a year ago. Showing impressive customer growth, the business now has more than 97 million daily users, up 47% from a year ago.
A key factor behind Reddit’s fast growth of late is artificial intelligence. In a letter to shareholders, Reddit co-founder and CEO Steve Huffman said a new AI-powered service that lets people translate posts between English, French, Spanish, Portuguese, Italian and German quadrupled its number of users. Reddit plans to roll out the feature to more than 30 countries over the course of 2025, he added.
“In 2024 so far, ‘Reddit’ was the sixth most Googled word in the U.S., underscoring that when people are looking for answers, advice or community, they’re turning to Reddit,” Huffman wrote. “We saw this play out in real time when the White House came to Reddit to share critical information during recent hurricanes, reaching people in the affected areas with timely updates.”
Reddit was launched by Huffman, Alexis Ohanian and Aaron Swartz in 2005, only some 16 months after Mark Zuckerberg launched Facebook. But Reddit didn’t go public until earlier this year and had never turned a profit, piling up hundreds of millions in losses even as its audience steadily grew.
Reddit’s stock, which in March debuted on the New York Stock Exchange at $34 a share under the ticker symbol “RDDT,” have since more than tripled in value and traded Wednesday afternoon at $113.50, up 39% on the day.
Today, the company’s main source of revenue remains advertising, although it now also brings in money through financial agreements with companies like Google and OpenAI that train their generative-AI tools on Reddit’s content.
“Looking ahead, including the search experience on Reddit is a key part of our strategy,” Huffman said Tuesday in a call with Wall Street analysts. “We want to ensure that all users have the best experience possible. This includes users coming to Reddit from external search and those searching directly on Reddit who are looking for recommendations on what to buy, what to watch, or what products or services are the best.”
contributed to this report.
Billionaire Elon Musk has been ordered to attend a Philadelphia court hearing on Thursday after he was sued by District Attorney Larry Krasner over his $1 million giveaway to voters.
The hearing is scheduled to begin at 10 a.m. in a courtroom at City Hall in Center City, according to a court document.
Last week, Krasner sued Musk and alleged that Musk and his super PAC are trying to influence voters in next week’s presidential election between former President Donald Trump and Vice President Kamala Harris.
“The Philadelphia District Attorney is charged with protecting the public from public nuisances and unfair trade practices, including illegal lotteries. The DA is also charged with protecting the public from interference with the integrity of elections,” Krasner said in a statement announcing the complaint last week.
Musk, who founded Tesla and SpaceX, has thrown his full support behind Trump in his run for a second term in the White House. Nearly two weeks ago, he vowed to hand out $1 million a day until Election Day on Nov. 5 to voters who signed his PAC’s petition supporting the First Amendment and Second Amendment of the Constitution.
Some experts have questioned the legality of Musk’s actions to give voters $1 million.
“The actions that we’re seeing … it violates federal law pretty clearly. Actually, I don’t think it’s a particularly close call,” Adav Noti, executive director of the Campaign Legal Center, told CBS News last week.
Pennsylvania Gov. Josh Shapiro also questioned Musk’s giveaway.
“I think there are real questions with how he is spending money in this race, how the dark money is flowing, not just into Pennsylvania, but apparently now into the pockets of Pennsylvanians. That is deeply concerning,” he said on NBC’s “Meet the Press” last week.
Musk has been very active in supporting Trump in Pennsylvania, one of the key battleground states in the election. He was in the Philadelphia area for a town hall on Oct. 17 calling on Pennsylvanians to get registered to vote.
At the town hall in Ridley High School in Delaware County, Musk called Pennsylvania “linchpin” for the 2024 election.
“I’m here for a very important reason, which is – I can’t emphasize this enough – Pennsylvania, I think, is the linchpin in this election,” Musk said at the time. “This election, I think, is going to decide the fate of America, and along with the fate of America, the fate of Western civilization.”
Joe Exotic, made famous in the Netflix series “Tiger King” and currently serving time in federal prison, says he is engaged to a fellow inmate in Texas and hopes to get married.
Exotic, whose real name is Joseph Maldonado, is currently incarcerated at Federal Medical Center Fort Worth. He submitted a marriage application to the federal prison to wed fellow inmate Jorge Marquez Flores, he announced in a news release Wednesday.
Maldonado was convicted in 2019 on 21 counts, including 19 counts of wildlife crimes and two counts of hiring hitmen to kill animal activist Carole Baskin. He is serving a 21-year sentence.
His fiancé, 33-year-old Jorge Marquez Flores, originally from Mexico, is serving time for immigration-related issues, according to Maldonado’s news release.
According to Maldonado, both men are optimistic the prison will approve their application and have “high hopes” that Maldonado’s appeal will succeed. He hopes the two would be released from prison in mid-2025.
In his news release, Maldonado also requested a presidential pardon for both he and Flores, as well as asylum for Flores.
“I wish someone that is President or wins the Presidency would do the right thing and pardon me so I could move past this nightmare that my own country has caused for the last 7 years of my life,” Maldonado wrote in the news release. “All I did was build a zoo and some people were very jealous. Then I was put into prison by my own country.”
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