Reddit, Inc. (RDDT) shares are experiencing a surge today following the company’s announcement that it has resolved a recent issue that caused an outage for thousands of users. The disruption, which affected users across the United States, was attributed to a recent update that unintentionally impacted platform stability.
According to Reuters, citing a statement from the company, Reddit acknowledged the issue and stated, “Earlier today we shipped an update that unintentionally impacted platform stability. We deployed a fix and are back up and running.” Downdetector, a platform that tracks service disruptions based on user reports, recorded over 152,982 outage reports across the US.
Reddit, known for its forums called “subreddits,” where users engage in discussions on various topics, primarily generates revenue through advertising. The platform recently reported strong second-quarter revenue of $281.2 million, exceeding the consensus estimate of $253.58 million.
Looking ahead, Reddit anticipates third-quarter revenue to be in the range of $290 million to $310 million, with an Adjusted EBITDA of $40 million to $60 million. The company’s recent performance and the swift resolution of the outage appear to have instilled confidence in investors, driving RDDT shares up over 15% in the past 12 months.
Investors can access RDDT shares through the Innovator Deepwater Frontier Tech ETF (LOUP). At the last check on Thursday, RDDT shares were up 4.98% at $58.93.
