Reddit's strong forecasts spark share surge after first results since IPO

FILE PHOTO: A person records the Reddit mascot as it rings the opening bell, at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) -Reddit said it could post an adjusted profit in the second quarter thanks to its booming advertising business and content-licensing deals with AI companies, impressing investors who sent its shares soaring 16% in extended trading on Tuesday.

The earnings report - the first since Reddit went public in March - also included a revenue forecast for the current quarter that was above Wall Street estimates, as more people flock to the social media platform behind 2021's meme-stock frenzy.