timothy sykes logo

Stock News

Reddit’s Premarket Gains Send Shares Soaring 5.6%

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Reddit’s Premarket Gains Send Shares Soaring 5.6% Thumbnail

Reddit Inc.’s major platform updates catapult stocks up 12.55%, indicating strong investor optimism and engagement.

Key Takeaways:

  • Advancing by 5.6% premarket, shares of Reddit hint at further upward momentum, making investors eye their portfolios enthusiastically.
  • Amid new Google search format challenges, the company emphasized stronger ad platforms and innovations, earning Morgan Stanley’s favorable projections.
  • Quarterly earnings showcased a shift to profitability with increased revenue, driving a nearly 5% rise in share value.

Candlestick Chart

Live Update At 11:32:47 EST: On Wednesday, May 14, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 12.55%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In its recent earnings report, Reddit swung to profitability, revealing not only that the revenue had jumped during the period but also that investors and market watchers were pleasantly surprised. The driving force behind this was Reddit’s ability to navigate market volatility while maintaining an upward trajectory in revenue. This impressive performance was marked by a notable rise in the share price, providing enough general optimism to reinvigorate confidence.

Digging into the financials, the profitability shift meant the company saw its earnings ticking upward and marking a positive trend. Despite the economic pressures prevalent in markets worldwide, Reddit showed a resilience that captured a significant chunk of investor attention.

Reddit’s financial metrics have shown a boost, with a positive trajectory in key ratios reflecting healthy growth. Despite a pressing pretax profit margin of -36.5, the company’s revenue stood proudly north of $1.3B. Although the price-to-sales ratio sat at 18.91 and the PE ratio oscillated at 23.36, Reddit demonstrated an ability to harness its expansive reach and engagement data into impressive financial performance metrics.

More Breaking News

Market Influences and Strategic Shifts

Advertising Realm Dynamics

A recent surge in advertiser tensions around TikTok’s US challenges seemed to create golden opportunities for Reddit. It stands in line to potentially grasp more digital advertising budgets as marketers look for alternatives in social media. With the social media giant continuously innovating and enhancing its ad platform, it beckons a newfound desire among advertisers to explore fresh waters, eliciting a gradual shift towards Reddit.

Similarly, Reddit’s improvement in its protection mechanisms against formidable advertising search giants like Google re-enforces its adaptability in a fiercely competitive ecosystem. The next-gen machine learning improvements have strengthened its position, moving Morgan Stanley analysts to project an upsurge in its earnings.

Statement of Growth; Reddit Advances

This premarket spike of 5.6% serves as a testament to confidence in its shares, setting a fertile ground for growth expectations. Drawing from analytics, this upswing ties to strategic plays in advertising, enhancements in user engagement, and operational efficiencies segmented within cost rationalizations and AI model expansions.

Investment strategies have shifted, making a case study out of Reddit’s unfolding journey, as it dunes upon promising markets and excavated opportunities.

Conclusion

The indicators point towards a season of remarkable resilience and growth for Reddit, fueled largely by strategic initiatives that calibrate user engagement and advertiser preferences. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” The company’s adaptability amid uncertain search engine trends, coupled with its forthcoming acquisitions, manifests its capacity to outshine peers in the digital ecosystem. This outlook invites optimism, as the market prepares for the trajectory Reddit might chart in upcoming quarters with potential surprise gains awaiting around the corner.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”