Reddit stock jumps 16% after forecast citing AI ads
Business
Reddit's stock just shot up 16% after the company predicted stronger revenue ahead, thanks to its AI-powered ad system that blends ads right into subreddit chats.
Even after a rough year (stock down roughly 36% year-to-date), Reddit managed to grow daily users by 17% (now at 126.8 million) and boosted revenue per user by 44%.
Reddit hiring while others cut jobs
Reddit's smart ad tools, like an AI copywriter and auto-cropping for images, make life easier for advertisers and help Reddit stand out from giants like Meta.
While others have cut thousands of jobs, Reddit is still bringing on new talent.
Analysts say winning over more US users will be key as Reddit leans into these tech upgrades for future growth.