Reddit surges as AI-driven ad strategy wins praise from Wall Street


The company logo for Reddit is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 15, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) -Reddit's shares surged 15% on Friday after it reported quarterly results that exceeded Street expectations, boosting investor confidence in the platform's AI-based advertising tools and strong user engagement.

The company has also posted a rosy forecast that comes on the heels of similarly upbeat results from ad industry leaders such as Meta and Alphabet, underscoring a broader sector shift as advertisers gravitate towards platforms that provide artificial-intelligence tools to create more personalized campaigns.

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