Reddit rises in after-hours trading on Q3 earnings numbers
Here’s how they look.
After a rough, nearly 8% slide during Thursday trading, Reddit reported generally strong Q3 financials. The stock whipsawed at first before heading up in the after-hours session.
Q3 earnings per share were $0.80 vs. the $0.52 consensus expectation from analysts, per FactSet.
Growth in “daily active uniques” was 19% vs. the 17% that Wall Street expected.
Q3 revenue came in at $585 million vs. the $549.1 million expectation.
Guidance on Q4 sales is between $655 million and $665 million vs. the $637.5 million consensus.
Reddit shares have zigzagged wildly in recent months. They surged as much as 70% after the company’s previous earnings report was issued in late July, as traders seemed to view Reddit as perfectly positioned for the AI era; it could sell access to its highly valuable content as training data for AI giants, while simultaneously strengthening its role as a central destination for human interaction and information-gathering amid a rising tide of AI slop.
But in late September, the shares began to stumble, first as the provider of online forums began to come under political scrutiny in the wake of the assassination of right-wing influencer Charlie Kirk, and later because of online chatter that Reddit’s share of ChatGPT citations was in sharp decline, suggesting some sort of change in the Reddit’s content-sharing deal with OpenAI.
Reddit’s AI relations have only seemed to get more complicated, with the company launching a lawsuit against Perplexity AI over alleged unauthorized content scraping by the chatbot search engine. Reddit has previously sued Anthropic on similar grounds.
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