Shares of social media platform Reddit Inc (NYSE:RDDT) are surging today, last seen up 12% at $164.52 and earlier jumping as high as $167.50. The company announced better-than-expected first-quarter results and a strong current-quarter forecast, with AI-driven ad growth boosting revenue. In fact, revenue grew 69% from the same quarter a year ago. Plus, daily active users narrowly beat estimates at 126.8 million.
Today's pop has RDDT looking to snap a three-day losing streak, though the 60-day moving average kept this week's lows in check. A round of short covering could be giving the shares a lift, as short interest represents 12.1% of the stock's available float. Despite today's gains, the equity remains down 31% year to date.
No fewer than three analysts lifted their price targets after the event, including Evercore ISI to $300 from $290, while two others chimed in with price-target cuts. RDDT currently has a "buy" consensus rating; of the 29 analysts in coverage, 17 carry a "buy" or better rating, 11 a "hold," and one a "strong sell." Meanwhile, the 12-month consensus price target of $228.54 sits at a 44.2% premium to current levels.
Over in the options pits, Reddit has seen 55,000 calls and 79,000 puts exchanged today, six times the overall options volume typically seen at this point. Expiring at the end of the day, the weekly 5/1 170-strike call is the most popular.
