Reddit introduces new AI advertising features, posts strong fiscal results, and projects solid earnings growth.

From Yahoo Finance: 2025-06-19 08:00:00

Reddit has introduced two new AI-powered advertising features to stay competitive in the market. The new tool, “Reddit Insights powered by Community Intelligence,” provides real-time insights for marketers. Reddit’s stock has surged after joining the Russell 3000 Index. The company reported strong fiscal 2025 first-quarter results with revenue of $392.4 million.

Reddit’s revenue surged by 61% year-over-year, with a global Daily Active Unique count of 108.1 million. U.S. revenue increased by 57% to $313.9 million, while international revenue surged by 82%. Reddit recorded net income of $26.2 million, a significant turnaround from the previous year. Second-quarter revenue is expected to be in the range of $410 million to $430 million.

Wall Street analysts project solid earnings growth for Reddit. EPS is expected to increase by 416.7% year-over-year in the second quarter. Analysts are optimistic about Reddit’s future growth trajectory. Despite a high valuation, Reddit may be a solid long-term investment. Analysts have given the stock a consensus rating of “Moderate Buy.”

Reddit’s financials are climbing, and the addition of AI features paints a favorable picture for the company. Despite macroeconomic pressure, Reddit’s growing user base and strong financials make it an attractive long-term investment option. On the date of publication, the author did not have any positions in the securities mentioned.



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