MMR

2 Social Media Stocks Surging After Earnings

RDDT is trading at a new all-time high after the event

Deputy Editor
Oct 30, 2024 at 10:38 AM
facebook X logo linkedin


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.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)