Manhattan, New York
— August 14, 2025

“You can’t have artificial intelligence without actual intelligence.” That’s how Reddit’s CEO, Steve Huffman, kicked off their Q2 earnings — highlighting their growing user base and endless stream of human-generated content.

What’s up, guys — Reddit stock is red hot right now, up 60% since those Q2 earnings. Whether you own the stock, are thinking about buying, or just follow the name, here are a couple of game notes on why we’re seeing such a big move — and what the future might hold for Reddit.

1. The Stock
Sitting at about $240 per share, Reddit is now at an all-time high with a market cap of $45 billion. Keep in mind, Reddit is still a relatively new stock — only about a year and a half old — and it’s been pretty volatile since its IPO.

2. The Q2 Earnings Beat
One of the main catalysts for this breakout is that Q2 report. Reddit beat revenue estimates by 17%, coming in at $500 million versus the $426 million Wall Street expected. They also beat on earnings per share: $0.45 vs. $0.19 expected. The big headline? Revenue growth of 78% this quarter — one of the highest growth rates we’ve seen since going public.

3. Monetization
Where’s the money coming from?

• Advertising: 93% of Reddit’s revenue comes from ads, which grew 84% this quarter to $465 million.
• Data Monetization: This grew by 24%, driven by deals with Google and OpenAI to let their large language models scrape Reddit’s massive database of human-generated content.

4. Product Development
Two buckets: advertisers and users.

• Advertiser Tools: New AI features for better ad placement, auto-targeting, format optimization, and community intelligence for creative decisions.
• User Experience: Real-time personalization, smarter community discovery, and enhanced search and answers features.

Risks
A big one: Reddit gets a lot of traffic from Google. Any change there is a serious threat. And in AI? They have to play their cards exactly right, because AI is set to disrupt not just social media, but the internet as a whole.

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