Reddit's stock surged 26% this week, driven by a resurgence in the broader stock market amid easing trade tensions. The rise follows a challenging period for the company, whose shares plummeted recently due to economic concerns. Despite no direct updates from Reddit, the stock gained traction following Alphabet's positive earnings report, which boosted related advertising stocks. As Reddit prepares to report its earnings, analysts predict significant revenue growth but caution that a recession could pose risks to its recovery momentum.
Investors also appeared to take advantage of the company's beaten-down stock price, as Reddit shares had fallen sharply in recent months on broader signs of economic weakness.
Though there was no company-specific news out on the stock, the recovery in Reddit stock shouldn't come as much of a surprise, as the social media stock is one of the more economically sensitive right now.
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