Reddit Inc. (RDDT) shares closed at $133.84 on Tuesday, marking a 41.9% drop from its 52-week high of $230.41 on February 10, 2025. Year-to-date, Reddit’s shares have declined 18.1%, while the Zacks Internet-Software industry has gained 10.7%.
Reddit’s performance has been pressured by challenging macroeconomic conditions, higher tariffs, and competition from Snap (SNAP) and Nextdoor (KIND). However, Reddit’s first-quarter results helped recover some losses, with shares increasing 12.7% since May 1, outperforming Snap and Nextdoor.
Reddit reported non-GAAP earnings of 13 cents per share, exceeding estimates by 11 cents, with revenues of $392.36 million, a 61% year-over-year increase. Daily and weekly active users rose by 31%, while advertising revenue reached $358.6 million, also up 61% year-over-year. For Q2 2025, Reddit forecasts revenues between $410 million and $430 million, expecting 51.61% growth year-over-year.
