According to Yahoo Finance RDDT data, Reddit Inc. (RDDT) has seen a rise of 17.4% with a positive change of 28.05. The rise in the stock’s price is surprising, given that the US stock market faced a massive correction over the last few days. $1.11 trillion was liquidated from the US stock market on Aug. 2, 2025.

Why Is Reddit Stock Rising While The Stock Market Is Falling?

Reddit’s big gains follow a healthy quarterly earnings report with more users on the social media platform. According to the report, the company earned $500 million in revenue, beating the forecast of $426 million. The company’s earnings have risen by a whopping 78% from just one year ago.

CEO and co-founder Steve Huffman noted that the last three months were the most profitable quarter for the company in its history. RDDT’s price increased by 15% at Friday’s open. The price surge led to the stock reclaiming its year-to-date losses in one swift move.

While Reddit’s stock price rises, the larger market has faced quite a dip over the last few days. The dip is likely due to President Trump’s tariffs. The new tariffs announcement has hit every major US trade partner. The market crash was further affected by the worse-than-expected July jobs report. RDDT is one of the few stocks that was in the green zone following the selloff.

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The US government’s recent tax and spending bill will add trillions to the already skyrocketing US debt. The development has led to many investors distancing themselves from the US market. We could see investments in US dollar-based assets fall over the coming months. Tariffs seem to have cast another big shadow on the performance of the US market. How things unfold over the coming weeks is yet to be seen.