Reddit (RDDT) shares surged in premarket trading on Wednesday after the company reported earnings that topped estimates and provided a better-than-expected outlook amid robust digital advertising spending and lucrative artificial intelligence (AI) content licensing deals.
The company guided fourth-quarter revenue of between $385 and $400 million, handily surpassing the $357.9 million consensus view. While advertising sales generate the majority of Reddit’s revenue, AI licensing deals with Google’s Gemini and Open AI’s ChatGPT add a valuable boost to the social media platform’s top line.
The stock was up more than 22% to around $100 in recent premarket trading. Through Tuesday’s close, Reddit shares had more than doubled since going public in late March and were up 24% over the past month.
Below, we break down the technicals on Reddit’s chart and point out important post-earnings price levels to watch out for.
Since its March listing, Reddit shares oscillated within an ascending trianglebefore breaking out …