Why Reddit stock is trading higher today

Reddit (NYSE: RDDT) stock traded higher after the company announced a partnership program with major sports leagues.

The aim of the partnership is to bring more content to Reddit in a bid to increase user engagement, but also to create opportunities for advertisers to display video ads, AMAs and other formats alongside the content.

Why did this make the stock trade higher?

According to Reddit, major sports leagues are some of the company’s most engaged Reddit Pro users, and sports are some of the platforms most popular and fastest-growing interest groups.

The partnership can create a better experience on the platform for users and can increase advertising revenue for Reddit.

For users: The partnership can bring in new users to the platform and increase engagement and retention of existing users as well, helping boost Reddit’s active users. More active users will lead to more revenue.

For advertisers: Reddit has made itself more attractive to advertisers as this partnership opens new avenues for advertising. This can lead to an increase in advertising revenue for the company.

The partnership is also just a good sign because it shows the company can attract major partnerships and that there is interest and benefits to working with the platform. This partnership can increase Reddit’s user base, its revenue and its attractiveness towards other companies.

Reddit was trading 7.41% higher to $69.50 at the time of writing. The stock has a 52-week high of $78.07 and a 52-week low of $37.35.