Reddit’s stock soared after the company reported better-than-expected third-quarter earnings, driven by strong advertising revenue growth and user engagement. The social media platform’s success is attributed to its embrace of AI and its appeal to Wall Street investors betting on its potential for further growth in 2024. Key points: 1) Reddit’s advertising revenue jumped 26% year-over-year, fueled by AI-powered ad targeting and content recommendations. 2) Monthly active users increased by 19%, reaching 430 million, as Reddit’s AI-curated content feeds kept users engaged. 3) Wall Street analysts are bullish on Reddit’s prospects, citing its AI capabilities and potential to capture a larger share of the digital advertising market in 2024. 4) Reddit’s CEO highlighted the company’s focus on responsible AI development and user privacy protection as key differentiators. 5) The strong earnings report and AI-driven growth prospects have boosted investor confidence in Reddit’s long-term trajectory.
Source: https://www.businessinsider.com/reddit-stock-surge-q3-earnings-ai-wall-street-2024-10