Reddit Stock Surges on Record Profit, Strong Ad Projections

Reddit Inc. shares jumped after the company reported its most profitable quarter to date and projected third-quarter sales that far surpassed analyst expectations, signaling the strength of its growing advertising business.

Sales for the current quarter are expected to be between $535 million and $545 million, Reddit said in a statement Thursday, with the midpoint of that range exceeding the average Wall Street estimate of $473 million. Net income was $89 million, more than double the $36 million average analyst estimate.