Reddit surprises the markets with impressive figures

In the world of stock commentary, Jim Cramer regularly causes a stir, but his recent statement on Twitter sparked an especially lively response. Cramer placed Reddit’s latest impressive performance on par with the results of industry giant Google, which came as a surprise to many observers. Cramer acknowledged that it is difficult to definitively determine which of the two technology companies generated more profit. Reddit, once considered an underdog in the tech sector, is now showing that it can indeed challenge established giants and impress both investors and users. Both Reddit and Google exceeded analysts’ expectations with their third-quarter results. Notably, Reddit surpassed quarterly expectations: Despite a projected loss, the company earned 16 cents per share. Revenues were significantly above expectations at $348.4 million, and the gross margin remarkably improved to 90.1%. A 47% growth in daily active users to 97.2 million supports this success. For the first time since its IPO in March, Reddit posted a profit. Reddit’s future prospects also garnered interest on Wall Street. With an optimistic revenue forecast for the fourth quarter of $385 to $400 million, the company exceeded analysts’ estimates significantly, leading to adjustments in price targets. For instance, Roth MKM raised their forecast from $89 to $116, Piper Sandler from $70 to $115, and Needham increased to $120. Google’s quarter was no less impressive. The company beat earnings estimates with $2.12 per share, while cloud revenue rose by 35% to $11.4 billion, and total revenue reached $88.27 billion. Advertising revenue also exceeded expectations at $65.85 billion.