Why Is Reddit Stock Surging Today?

Marvell Technology's Deal: Marvell Technology, Inc. announced a $2.5 billion all-cash deal to sell its Automotive Ethernet business to Infineon Technologies, which is expected to close by the end of 2025 pending regulatory approvals.

Financial Projections and Market Response: The sale is projected to generate $225 million to $250 million in revenue by 2025 with a gross margin of around 60%, and Marvell shares rose 3.82% in premarket trading following the announcement.

XPeng Inc. Market Activity: XPeng shares are up 7.17% following a new stimulus package from China's Central Bank, and the company has formed a dealership agreement to enter the Qatari market, allowing local consumers to purchase all-electric models by year-end.

Emerging Markets for EVs: Latin America, the Middle East, and Southeast Asia are becoming key markets for Chinese electric vehicle manufacturers due to lower geopolitical risks and increasing adoption of electric vehicles as GDP per capita rises.

Dell's Financial Outlook: Dell Technologies announced job cuts and expects a decline in net revenue due to ceasing distribution of VMware products, while anticipating increased input costs and competitive pricing pressures. However, the company projects net revenue growth driven by demand for AI-optimized servers and a PC refresh cycle.

Stock Performance and Earnings: Dell reported second-quarter revenue of $25.03 billion, exceeding estimates, with adjusted earnings of $1.89 per share. The stock has risen over 48% in the past year, reflecting strong investor interest despite challenges in profitability related to high chip costs.

Dell's Financial Performance: Dell Technologies reported better-than-expected second-quarter results with revenues of $25.03 billion and adjusted earnings of $1.89 per share, leading to a 3.2% increase in stock price.

Analyst Outlook: Analysts from Goldman Sachs and J.P. Morgan maintain positive ratings on Dell, citing strong growth potential in AI server margins and expectations for recovery in the PC market, which could drive double-digit earnings growth.

Reddit's Service Recovery: Reddit shares surged after the company resolved a recent outage that affected thousands of users, with over 152,982 reports logged by Downdetector.

Financial Performance: Reddit reported second-quarter revenue of $281.2 million, exceeding estimates, and anticipates third-quarter revenue between $290 million to $310 million, contributing to a 4.98% increase in RDDT shares.