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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.”
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An Arizona man says police held him down on scorching asphalt while arresting him during the height of Phoenix’s summer heat wave, causing third-degree burns on his body.
Video obtained by CBS News from the man’s attorney shows Michael Kenyon talking on his cell phone walking in a parking lot on July 6 when police pull up in a Phoenix police truck. Two officers get out and Kenyon puts away his phone. Within a few minutes, they try to handcuff him and a struggle ensues. Two backup officers then arrive at the scene.
It appears from the video that the four officers push Kenyon onto the ground and hold him there. Officers then scuffle with Kenyon before he is finally handcuffed and the officers lift him from the asphalt and escort him into a police vehicle.
Kenyon’s attorney, Bobby DiCello, said he spent more than one month in the hospital after the incident recovering from burns from the asphalt.
When officers lifted Kenyon off the asphalt, his melted skin peeled off and fell to the ground, his attorney said. Police called an ambulance after an officer noticed his burns, police said.
Bobby DiCello
“They held a man — another human being — on a surface so hot that it caused his skin to bubble and boil. It defies all reason,” DiCello said in a statement, adding his client was now “scarred for life.”
DiCello said the temperature that day was 114 degrees, with the asphalt estimated to be between 180 and 200 degrees. Phoenix hit 100 straight days with at least 100-degree temperatures during the summer. Arizona has the country’s only chief heat officer, and Maricopa County, where Phoenix is located, is the hottest metro area in the United States.
Phoenix police said officers responded to a call regarding a theft in progress. “Officers made contact with Kenyon, telling him he was being detained so they could understand what may have occurred. The man struggled with police, which resulted with him being taken to the ground on the hot asphalt. The man sustained burns to different parts of his body from the time he was on the ground,” police said in a statement to CBS News.
Police said Kenyon was determined not to be the robbery suspect they were searching for that day. Later when he was taken to the hospital, officers learned he had a felony warrant out for his arrest.
Phoenix police said their Professional Standards Bureau is investigating the incident.
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.”
