Reddit Shares Jump 11% After Beating Earnings Expectations

Shares of Reddit Inc. rose 11% on August 4, 2026, following the release of second-quarter earnings results that exceeded investor expectations. The company reported a 61% year-over-year revenue increase to approximately $805 million. This recovery follows a prior 20% sell-off driven by investor concerns regarding a lack of new AI data licensing agreements and inconsistent search referral traffic.

CEO Steve Huffman characterized search referrals as "choppy" during the second quarter, attributing the instability to Google's integration of AI-generated summaries into search results. This shift potentially threatens the traditional referral traffic that has historically driven users to Reddit's platform.

Looking forward, the company provided a third-quarter revenue forecast between $860 million and $870 million. This guidance surpasses the $830 million predicted by Wall Street analysts, fueling the current positive momentum in the stock's price.