Reddit stock jumps after launching new AI ad tools

Reddit (RDDT) increased by 8 % late on Tuesday morning after the release of the social media platform for new AI tools at the Cannes Lions Festival the day before.

The new Reddit tool, called Reddit Community Intelligence, allows the market to use Reddit posts to determine the advertising campaigns trends and integrate Reddit users’ comments in their ads.

While Reddit shares rose, S&P 500 (^Gspc) decreased. Reddit shares rose up to 15.8 % earlier in the trading session.

Read more about Reddit shares and market actions today.

Reddit leap is followed by 6.8 % on Monday, after the media highlighted a recent analysis from the SEMRUSH data analysis company showing that Reddit is the second most site for its martyrdom in Google (Google) an artificial intelligence overview.

The analysis said that Reddit may lead to Google due to a $ 60 million deal with a technology giant, allowing Google to use Reddit user posts to train artificial intelligence.

Despite the rise of Reddit Stock this week, the shares still decreased by approximately 16 % for this year and much less than its height of more than $ 230 in February. Social media arrow has suffered, as Google Search algorithms have motivated continuous fears between investors about the traffic of users. Google represents 40 % to 50 % of the Reddit movement, according to the JPMorgan Doug Anmuth analyst.

In February, Reddit’s shares decreased by more than 20 % a week after his profits in the fourth quarter, which erred in Wall Street’s expectations due to the change of Google’s search algorithm. Daily active users and profits are the expectations of analysts.

Today, which followed the profit report in the first quarter of Redit in May, the shares decreased by more than 4 % after executive officials said that there were other changes on the Google search algorithm that might create traffic fluctuations.

“This is expected to be in any year, but given that the ecosystem of the research is subject to heavy construction, the near extent may be more rugged than usual,” said Steve Hoffman, CEO of the Investor Company in the post -profit call in May.

The company, which is Openai’s (OPAI.PVT) Sam Altman as a major investor, last March in one of the most important subscriptions in 2024 and its first profits were recorded shortly after.

Laura Praton is a reporter for Yahoo’s funding. Follow it on Bluesky @laurabratton.bsky.social. Email it on laura.bratton@yahoink.com.

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