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Reddit Rallies on Q3 Beat as Options Market Signals More Upside

AI licensing with Google, OpenAI emerges as Reddit's key monetization catalyst.

Overview

  • Shares extended post-earnings gains after Reddit reported its fifth straight profitable quarter, delivering $0.80 EPS on $585 million in revenue, up about 68% year over year.
  • Advertising revenue grew 74% in Q3 and average revenue per user rose 41%, highlighting stronger monetization.
  • Daily active users reached 116 million, with international usage up 31% following the rollout of translations across 30 languages.
  • Barchart options data indicates a near-term move toward roughly $229 by Nov. 14, with Jan. 16 contracts implying potential upside to about $253.
  • Despite the rally, the stock remains more than 20% below its year-to-date high, as some analysts recommend buying or accumulating on a multi-year view.