Reddit shares soar as earnings show advertising, AI licensing revenue potential

FILE PHOTO: A trader wears a t-shirt with Reddit's logo, at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) -Reddit soared as much as 11% in early trading on Wednesday after the social media firm floored investors with strong revenue growth and improving profitability in the first earnings since its market debut.

The company surprised Wall Street late on Tuesday with a forecast that it could post an adjusted profit in the second quarter, and its revenue outlook was also far above estimates.