Latest news with #ConversationSummaryAdd-ons
Yahoo
11 hours ago
- Business
- Yahoo
Reddit (RDDT) Jumps 6% on New AI Feature
Reddit Inc. (NYSE:RDDT) is one of the . Reddit extended its winning streak to a fourth straight day on Tuesday, adding 6.05 percent to close at $133.84 apiece as investors cheered the launch of its new Artificial Intelligence-powered feature. On Monday, Reddit Inc. (NYSE:RDDT) launched the AI-powered Reddit Community Intelligence, which will offer new ad tools that help brands and showcase conversations happening on the platform. Copyright: prykhodov / 123RF Stock Photo Community Intelligence is the collective knowledge from the billions of human conversations across the Reddit platform. It powers products and insights and turns more than 22 billion posts and comments into structured intelligence for smarter marketing decisions. As part of its early-stage products, Reddit Inc. (NYSE:RDDT) is offering Reddit Insights and Conversation Summary Add-ons. Reddit Insights is an AI-powered social listening tool that provides precise, real-time insights that help marketers confidently plan campaigns, validate creative ideas, and make smarter business decisions. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Time of India
a day ago
- Business
- Time of India
Reddit Inc stock soars 15%: Is it time to buy into the hype? What is the reason behind the jump?
Shares of Reddit Inc. (traded as RDDT ) witnessed a sharp upswing early Tuesday, surging over 15% shortly after the market opened. The dramatic rise has triggered intense interest among retail and institutional investors, prompting renewed discussions around the stock's long-term potential and its underlying fundamentals. With Reddit's current stock price at $145.48, up $19.29 from its previous close, market observers are evaluating whether this momentum signals a durable breakout or a short-lived speculative bounce, as mentioned in a report by Bloomberg. Early Trade Snapshot: Strong Opening Spurs Optimism According to trading data as of 9:41 a.m. GMT-4, Reddit Inc. opened at $134.00, significantly higher than its prior close of $126.19, and climbed rapidly to hover near the intraday high of $145.69. The price movement reflects intense early-session buying, driven largely by positive sentiment surrounding Reddit's technological and advertising developments. For traders relying on short-term price action, the steep climb has become a focal point for potential entry, although analysts caution against overlooking the risks posed by the stock's extreme volatility. Valuation Metrics Show High Growth Expectations The bullish movement has reignited debate about Reddit's sky-high P/E ratio of 233.35, which many analysts interpret as a reflection of elevated growth expectations. While high multiples are common for tech-driven platforms, such valuation levels also amplify downside risks in case of earnings misses or changing market sentiment. Live Events Reddit's 52-week trading range—from $49.13 to $230.41—further underlines its volatility. Currently trading in the upper half of this band, the RDDT stock remains well below its historic peak, signaling both room for further growth and the potential for pullbacks. No Dividend, But Big Tech Ambitions True to its growth-stage character, Reddit offers no dividend yield, choosing instead to reinvest in innovation and expansion. The company recently unveiled a set of AI-powered advertising tools—a move that many see as central to its future revenue model. Announced at the Cannes Lions Festival, these tools include Reddit Insights, a real-time community listening platform for marketers, and Conversation Summary Add-ons, which allow brands to attach positive Reddit discussions under their ads. Powered by the company's proprietary Reddit Community Intelligence engine, these tools are designed to help brands better understand and engage with Reddit's highly interactive user base. 'Reddit is positioning itself as a serious player in the AI marketing space,' the company stated in its announcement. Early testing partners include Publicis, Lucid, and Jackbox Games. Investor Take: A High-Risk, High-Reward Proposition From a technical standpoint, Reddit's explosive price action may present opportunities for aggressive day traders looking to ride the wave. However, the elevated valuation, lack of dividends, and wide price swings make it a precarious choice for long-term investors, as per a report by CNBC. Bullish arguments centre around Reddit's innovation in AI advertising, its massive online community, and recent revenue growth. Bearish views, however, highlight concerns over overvaluation, excessive volatility, and the risk of buying after a sharp rally. Weigh the Momentum Against Fundamentals Reddit's recent price jump—fuelled by optimism around its AI initiatives and digital advertising push—offers a compelling case for investors who can stomach risk and are chasing high returns. However, caution is warranted. With rddt stock trading at lofty valuations and exhibiting unpredictable movements, prudent investors may prefer to wait for consolidation or clearer earnings trajectories before entering. FAQs Why did Reddit Inc. (RDDT) stock jump over 15% on June 17, 2025? Reddit shares surged more than 15% due to strong early-session buying interest, sparked by optimism around its AI-powered advertising tools and positive investor sentiment. The stock opened at $134.00 and quickly climbed to an intraday high of $145.69. What is Reddit's current stock price and valuation? As of the latest trading data, Reddit is priced at $145.48, reflecting a gain of $19.29 from the previous close. It carries a high P/E ratio of 233.35, suggesting elevated investor expectations for future growth. Economic Times WhatsApp channel )
CNBC
a day ago
- Business
- CNBC
Reddit stock jumps after company rolls out new AI advertising tools
Reddit shares popped about 5% after the social media company debuted new artificial intelligence-powered advertising tools. The two new features, announced Monday in a post during the Cannes Lions festival, will help brands better leverage discussions on the platform. The company said the tools are powered by an engine called Reddit Community Intelligence that turns "posts and comments into structured intelligence." Reddit announced a "listening tool" called Reddit Insights, which shares real-time insights with marketers to help them identify trends and launch campaigns. The other tool, called Conversation Summary Add-ons, allows brands to show "positive" user content under their ads. "These are tools for a new era of community marketing, one where brands can tap into Reddit's authenticity and connect meaningfully with high-intent communities around the world," the company wrote. The company said Publicis served as the exclusive alpha tester for Reddit Insights, while Lucid and Jackbox Games were among the early testers for Conversation Summary Add-Ons. Companies across industries are betting on new ways to harness AI to improve advertising campaigns and better engage with users. These new tools are transforming the industry while also putting pressure on some advertising stalwarts. The industry is also currently navigating a bumpy environment spurred by the trade war with China. During the recent earnings season, many companies warned of sluggish advertising sales in certain regions due to a rocky macroeconomic environment. Recent developments, however, have suggested a cooling of tensions between the U.S. and China. Last month, Reddit posted strong sales and upbeat guidance. The company has benefited from recent changes to Google search and internal site improvements, which include convincing logged-out users to open accounts. Logged-in accounts are more beneficial to advertisers.
