Reddit Stock Surges 18.3% on Strong Q2 Earnings, AI-Driven Ad Growth

Reddit Inc. shares soared 18.3% to $190.03 after reporting a blockbuster second quarter, with revenue jumping 78% year-over-year to $500 million. The social media platform flipped to a net profit of $89 million, a stark reversal from last year's loss, while gross margins expanded to an impressive 90.8%.

Advertising revenue surged 84% to $465 million, driven by AI-powered optimization tools that improved click-through rates. International growth proved equally robust, with non-U.S. users now comprising over half of daily active users.

The results underscore Reddit's successful monetization strategy as its market capitalization swelled to $35.11 billion. Trading volumes spiked during the session, with shares reaching an intraday high of $196.67 before settling at $190.03.