New York, July 2, 2026, 05:05 EDT
- Reddit, Inc. NYSE:RDDT jumped 13.7% to $197.42 on Wednesday. Call option trading was busy, coming in 45% above its usual volume.
- Shares added about $4.6 billion in market value in one session, based on reported market cap. That’s against $120.6 million in long-term obligations, most from content licensing.
- Reddit traded at $196.10 ahead of Thursday’s open, according to Google Finance.
- NYSE stocks will close Friday, July 3, for the Independence Day holiday.
Reddit, Inc. NYSE:RDDT heads into Thursday’s New York premarket with investors looking at the numbers: shares jumped 13.7% Wednesday, closing at $197.42. That move adds about $4.6 billion in equity value, based on MarketBeat’s listed $38.01 billion market cap. In its March-quarter filing, Reddit reported $120.6 million in performance obligations tied mostly to long-term content licensing contracts longer than a year.
The gap matters as the stock is trading on future AI data renewal hopes, not what Reddit has already signed. If the new licensing deals don’t come in higher, investors are just getting a high-priced ad stock growing fast.
MarketBeat and Google Finance listed the most recent trades like this:
| Measure | Latest read |
|---|---|
| Wednesday close | $197.42 |
| Wednesday move | up 13.7% |
| Wednesday volume | 8.75 million shares |
| Average volume cited | 5.23 million shares |
| Call options bought | 61,156 |
| Normal call volume cited | 42,052 |
| Thursday premarket quote | $196.10 |
| 52-week range | $119.27-$282.95 |
Shares outperformed the internet sector. The Nasdaq Composite dropped 0.66% on Wednesday, while the S&P 500 was down 0.22%. The semiconductor index slid 6.3%. Meta Platforms NASDAQ:META jumped 8.8% after reports said it’s working on a cloud unit to sell unused AI compute.
| Name | July 1 move | Read-through for Reddit |
|---|---|---|
| Reddit NYSE:RDDT | +13.7% | Hopes on AI licensing, calls active |
| Meta Platforms NASDAQ:META | +8.8% | AI infra gives more upside |
| S&P 500 | -0.22% | Overall tape soft |
| Nasdaq Composite | -0.66% | Tech names fell |
| Semiconductor index | -6.3% | AI chip stocks dropped |
Reddit’s filing lays out the numbers. First-quarter revenue came in at $663.4 million, with $624.7 million from ads and $38.7 million from other sources. The company also reported some content licensing and direct-to-user product sales, but said revenue from direct user products didn’t matter much for the reported periods.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total revenue | $663.4 million | $392.4 million | up 69% |
| Advertising revenue | $624.7 million | $358.6 million | up 74% |
| Other revenue | $38.7 million | $33.7 million | up 15% |
| DAUq | 126.8 million | 108.1 million | up 17% |
| Global ARPU | $5.23 | $3.63 | up 44% |
Steve Huffman, who founded Reddit and runs it as CEO, called Reddit a “one-of-one business” that runs on people and conversation in the April report. He said this set Reddit apart and gave it “a unique advantage in the age of AI.” Reddit Investor Relations
Needham’s Laura Martin, quoted by Blockonomi, kept a Buy rating and a $300 target. She put it simply: “human authentication is a mission-critical layer for LLMs.” Blockonomi
OpenAI said in 2024 it would use Reddit’s Data API to access real-time and structured data, and also become a Reddit advertising partner. Google NASDAQ:GOOGL said it has a Reddit deal as well, giving it Data API access for fresher information, display, training and other uses. Reuters reported in 2024 that Reddit’s arrangement with Google is valued at about $60 million per year.
Reddit says it’s still in the early days with content licensing, calling the market new and noting almost all licensing revenue is tied to just two partners. The company warned those contracts might not get renewed, or could be renewed with worse terms.
As of the dateline, NYSE core trading was still closed. The regular NYSE session is 9:30 a.m. to 4:00 p.m. ET. The exchange also marks Friday, July 3, as its 2026 Independence Day holiday.
Reddit put out second-quarter revenue guidance between $715 million and $725 million, and sees adjusted EBITDA at $285 million to $295 million. On Thursday, the focus is tighter: will traders keep paying now when licensing revenue is still small in the filings, with ads carrying the weight?
