financetom
Business
financetom
/
Business
/
Reddit Shares Surge Over 21% In Wednesday Premarket: What's Going On?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Reddit Shares Surge Over 21% In Wednesday Premarket: What's Going On?
Oct 30, 2024 9:58 PM

Reddit Inc. ( RDDT ) experienced a significant boost in its stock value, rising by 21.56% in pre-market trading on Wednesday, as per Benzinga Pro. This increase came after the company released its third-quarter financial results, which surpassed analyst expectations.

What Happened: Reddit ( RDDT ) reported earnings of 16 cents per share, outperforming the anticipated loss of 8 cents. The company’s revenue reached $348.4 million, exceeding the consensus estimate of $311.42 million.

Reddit’s net income was $29.9 million, a notable improvement from a net loss of $7.4 million in the prior year. Adjusted EBITDA was $94.1 million, compared to a loss of $6.9 million previously.

Why It Matters: Most of Reddit’s revenue stemmed from advertising, totaling $315.1 million. Additional income of $33.2 million was generated through data licensing deals, with Google’s parent Alphabet Inc. ( GOOG ) and OpenAI utilizing Reddit’s content for AI model training.

See Also: Mark Cuban Highlights Trump’s Potential To Ruin Christmas But He Might Also End Up Spoiling The Party For

Reddit’s recent financial success is closely linked to strategic partnerships and revenue diversification efforts. Earlier this year, Reddit ( RDDT ) entered a content licensing agreement with Google ( GOOG ), valued at $60 million annually. This deal allows Google ( GOOG ) to use Reddit’s content for AI model training, providing a new revenue stream for Reddit ( RDDT ).

Additionally, Reddit ( RDDT ) has formed a partnership with OpenAI, which enhances its AI capabilities and offers new features to Reddit ( RDDT ) users. This collaboration allows OpenAI to access Reddit’s Data API, improving the understanding and display of Reddit ( RDDT ) content.

Read Next:

Bitcoin Breaks $70K, Ethereum and Dogecoin Rise Amid Stock Rally Ahead Of ‘Mag 7’ Earnings: Analyst Says

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2025 - www.financetom.com All Rights Reserved