Reddit Stock Skyrockets 606% Since 2024 IPO

In the two years since its initial public offering in March 2024, Reddit's stock has skyrocketed 606%, making it a big winner for early investors. As of October 1, 2025, the company's share price has continued to climb, defying concerns that the stock may have become overvalued.

Reddit's impressive financial performance appears to justify the stock's meteoric rise. Over the past 12 months, the company has reported revenue of $1.67 billion, representing a robust 49% year-over-year growth. This growth has actually been accelerating, with sales increasing 78% in the second quarter of 2025 compared to the same period a year earlier.

Notably, Reddit has also maintained stellar profitability, with a gross margin of around 90% over the trailing 12-month period. This high-margin performance is largely attributed to the company's success in licensing data from its social media platform for the training of artificial intelligence (AI) models, a lucrative revenue stream that has continued to expand in recent quarters.

Given Reddit's combination of rapid sales growth and exceptional profitability, the business could be well on its way to becoming a long-term profit-generating machine. While the stock has already seen massive gains, some analysts believe it may still be undervalued at current prices, suggesting that the rally could have further to run.