Reddit rallies as AI‑driven ad growth fuels strong revenue outlook

Reddit shares jumped 16% in premarket trading on Friday after an upbeat quarterly revenue forecast underscored growing returns from the social media company’s AI-driven advertising tools.

The company’s AI-optimized ad platform helps advertisers place targeted ads directly within relevant discussion threads across its interest-based communities called subreddits.

The ‌strong results ⁠signal that ⁠the company’s strategy is paying off as Reddit takes on bigger ad rivals such as Meta’s Instagram and Facebook.