Why Is Reddit Stock Surging Today?

Reddit, Inc. RDDT shares are surging today. The company reportedly disclosed on Wednesday that it had resolved an issue from a recent update that caused an outage for thousands of users.

“Earlier today we shipped an update that unintentionally impacted platform stability. We deployed a fix and are back up and running,” reported Reuters, citing a statement from the company.

The report noted that Downdetector, which tracks service disruptions by gathering status updates from multiple sources, including user reports, logged more than 152,982 outage reports across the U.S. as of 04:09 PM ET.

Reddit is famous for its forums, called “subreddits,” where users engage in discussions on a wide range of topics. The platform mainly generates revenue through advertising.

Also Read: Reddit Partnerships With OpenAI, Google And Sprinklr Drive Upside: Analysts

This month, Reddit reported second-quarter revenue of $281.2 million, beating the consensus estimate of $253.58 million.

Reddit expects third-quarter revenue to be in the range of $290 million to $310 million and Adjusted EBITDA of $40 million to $60 million.

RDDT shares rose over 15% in the last 12 months. Investors can gain access to the stock via Innovator Deepwater Frontier Tech ETF LOUP.

Price Action: RDDT shares are up 4.98% at $58.93 at the last check Thursday.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.