On Monday, Reddit Inc. (NYSE:RDDT) experienced a brief outage that was quickly resolved. The company’s shares continued their sharp rally and remain up more than 60% year-to-date, according to Benzinga Pro.
Outage Disrupts Thousands Before Quick Recovery
According to Downdetector, outage reports peaked at over 21,000 around 5 p.m. ET, with U.S. users citing issues accessing feeds and posting content.
By 5:40 p.m., the number of reports dropped significantly, suggesting the downtime had eased.
Reddit did not immediately respond to Benzinga's request for comments.
Strong Earnings Backdrop
The outage came weeks after Reddit reported second-quarter revenue of $499.6 million, topping estimates of $424.7 million.
Earnings surged to 48 cents per share, well above analyst forecasts of 19 cents.
The company guided for third-quarter revenue between $535 million and $545 million, outpacing expectations of $471.5 million, with adjusted EBITDA projected at $185 million to $195 million.
Reddit currently trades at a forward P/E ratio of 88.5, reflecting investor enthusiasm despite its premium valuation.
Price Action: Reddit stock gained 3.68% in regular trading on Monday, closing at $263.64 and rose another 0.50% after hours.
Benzinga's Edge Stock Rankings show RDDT maintaining a strong positive trajectory across short, medium and long-term periods. Additional details available for investors.
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Photo Courtesy: EvaristoMGD on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
