Reddit Stock jumps after launching a new AI AD tool
reddit (red) Following social media platforms, stock prices rose 8% in late-night trading on Tuesday release of New AI Advertising Tools At the Cannes Lions Festival the day before.
A new tool from Reddit, known as “Reddit Community Intelligence,” allows marketers to use Reddit posts to identify trends in their advertising campaigns and integrate Reddit users’ comments into their ads.
While Reddit stocks are rising, the S&P 500 (^gspc) falls in pieces. Reddit stocks were up 15.8% early in the trading session.
Learn more about Reddit stock price movements and today’s market action.
Gain follows Monday’s 6.8% jump on Reddit Media reporting Spotlighted a Recent analysis From Data Analytics Firm Semrush, we show that Reddit is the second-cited website in Google AI overview (Goog).
The analysis stated that Reddit could work well on Google. $60 million deal Along with the tech giant, we’ll be able to train AI using Reddit users’ posts.
Despite this week’s rise in Reddit Stock, stocks still fall nearly 16% over the course of a year, well below the $230 in February. Social media stock is suffering due to changes in Google’s search algorithm It spurred ongoing concerns Among investors surrounding user traffic. According to JPMorgan analyst Doug Anmuth, Google accounts for 40 to 50% of Reddit traffic.
February, Reddit stock It fell by more than 20% The following week Fourth quarter revenue missed Wall Street’s expectations Due to changes in Google’s search algorithm. Daily active users and revenue missed analyst forecasts.
And the day after Reddit’s first quarter revenue report in May, Stocks fell by more than 4% After management said further changes to Google Search algorithms could create volatility in traffic.
“This is expected in any year, but given the intense construction of the search ecosystem, it could be more bumpy than usual over the near term,” CEO Steve Huffman told investors in a call after the revenues in May.
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Laura Bratton is a reporter for Yahoo Finance. Follow her at Bluesky @laurabratton.bsky.social. Email her to laura.bratton@yahooinc.com.
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