2 Social Media Stocks Surging After Earnings

Reddit and Snap both reported better-than-expected third-quarter results

Shares of social-media companies Reddit Inc (NYSE:RDDT) and Snap Inc (NYSE:SNAP) are surging today after earnings. The former reported its first quarter of profitability and said revenue for the fiscal fourth quarter would be above estimates, while the latter beat third-quarter expectations and announced a $500 million stock buyback program.

At last glance, Reddit stock was up 35.3% at $110.61, and earlier touched an all-time high of $114. RDDT, which went public in March, is up 144.6% over the last six months, and on track for its best daily gain on record.

Meanwhile, Snap stock was last seen 16.6% higher at $12.70. On the charts, shares are filling in a late July bear gap, as they pace for their best monthly gain since April. Year over year, SNAP is up 25.1%, but remains down 26% since the start of 2024.

Both equities are seeing higher-than-usual options activity today. For Reddit stock, 40,000 calls and 38,000 puts have crossed the tape so far, which is 12 times the intraday average volume. Snap stock has already seen 11 time the amount typically seen at this point, with 200,000 calls and 60,000 puts traded. Most active for the former is the weekly 11/1 111-strike call, and 12-strike call in that series for the latter, with positions opening at both.

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