Reddit (RDDT) shares are soaring 17.84% in pre-market trading on Friday, following the social media platform's impressive second-quarter earnings report and optimistic third-quarter guidance released after Thursday's market close. The company's financial performance significantly exceeded Wall Street expectations, demonstrating robust growth in both revenue and user engagement.

For the second quarter, Reddit reported adjusted earnings of $0.45 per share, more than doubling analysts' consensus estimates. Revenue soared to $500 million, marking a 78% increase year-over-year and beating the expected $426 million. The company's stellar performance was largely driven by its thriving advertising business, with ad revenue jumping 84% to $465 million compared to the same period last year. Daily active unique visitors increased by 21% to 110.4 million, surpassing analyst expectations.

Adding to the positive sentiment, Reddit provided a strong outlook for the third quarter, forecasting revenue between $535 million and $545 million, well above Wall Street's estimate of $473 million. The company's focus on AI-driven ad tools and its ability to offer marketers access to engaged, interest-based communities appear to be paying off. The success in expanding its international presence, with a 32% increase in international daily active users, further contributed to its strong results. In response to these impressive figures, several analysts have raised their price targets for Reddit stock, with some increasing their targets by $50 or more.