Latest news with #Google-driven
Express Tribune
6 days ago
- Business
- Express Tribune
Reddit reaping the rewards of AI strategy
Reddit's shares jumped 15 per cent before the bell 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, reported Reuters. The company's rosy outlook 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 personalised campaigns. The company expects third-quarter revenue of between $535 million and $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Reddit's focus on understanding user intent through authentic community conversations positions it to unlock new monetisation opportunities, said Danni Hewson, head of financial analysis at AJ Bell. "Being able to home in on exactly the kind of consumer who might be open to splurge on what a seller is offering has made sites like Reddit hugely popular with advertisers," Hewson said. Reddit's results, along with those of Google and Meta, signal the ad industry's resilience in the face of growing economic uncertainty brought on by shifting US trade policy. The company's diverse ad offerings, including ads inserting brands directly within conversations on its subreddit discussions, remain attractive to marketers. Reddit's daily active unique visitors increased 21 per cent, with analysts saying stabilising daily active user trends are bolstering investor confidence in the platform's "long-term growth narrative". Despite variable Google-driven traffic posing a headwind in the second quarter, Reddit's US daily active users held steady, expressing confidence that the company's unique content was valuable to both Google and searchers, analysts at Piper Sandler said. The company has been investing in new products, search capabilities and international expansion to offset inconsistent user traffic. If premarket gains hold, Reddit is set to add about $4 billion to its market cap.
The Hindu
6 days ago
- Business
- The Hindu
Reddit surges as AI-driven ad strategy wins praise from Wall Street
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 personalised campaigns. The company expects third-quarter revenue of between $535 million and $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Reddit's focus on understanding user intent through authentic community conversations positions it to unlock new monetisation opportunities, said Danni Hewson, head of financial analysis at AJ Bell. "Being able to home in on exactly the kind of consumer who might be open to splurge on what a seller is offering has made sites like Reddit hugely popular with advertisers," Hewson said. Reddit's results, along with those of Google and Meta, signal the ad industry's resilience in the face of growing economic uncertainty brought on by shifting U.S. trade policy. The company's diverse ad offerings, including ads inserting brands directly within conversations on its subreddit discussions, remain attractive to marketers. Reddit's daily active unique visitors increased 21%, with analysts saying stabilizing daily active user trends are bolstering investor confidence in the platform's "long-term growth narrative". Despite variable Google-driven traffic posing a headwind in the second quarter, Reddit's U.S. daily active users held steady, expressing confidence that the company's unique content was valuable to both Google and searchers, analysts at Piper Sandler said. The company has been investing in new products, search capabilities and international expansion to offset inconsistent user traffic. Reddit is currently valued at a premium compared to its peers, trading at 74.57 times its projected earnings over the next 12 months, well above Pinterest's 19.39 and Snap's 27.54. If gains hold, Reddit is set to add more than $4 billion to its market cap.
Time of India
7 days ago
- Business
- Time of India
Reddit surges as AI-driven ad strategy wins praise from Wall Street
Academy Empower your mind, elevate your skills 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 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 company expects third-quarter revenue of between $535 million and $545 million, well above analysts' average estimate of $473 million, according to data compiled by focus on understanding user intent through authentic community conversations positions it to unlock new monetization opportunities, said Danni Hewson, head of financial analysis at AJ Bell."Being able to home in on exactly the kind of consumer who might be open to splurge on what a seller is offering has made sites like Reddit hugely popular with advertisers," Hewson results, along with those of Google and Meta, signal the ad industry's resilience in the face of growing economic uncertainty brought on by shifting U.S. trade company's diverse ad offerings, including ads inserting brands directly within conversations on its subreddit discussions, remain attractive to daily active unique visitors increased 21%, with analysts saying stabilizing daily active user trends are bolstering investor confidence in the platform's "long-term growth narrative".Despite variable Google-driven traffic posing a headwind in the second quarter, Reddit's U.S. daily active users held steady, expressing confidence that the company's unique content was valuable to both Google and searchers, analysts at Piper Sandler company has been investing in new products, search capabilities and international expansion to offset inconsistent user is currently valued at a premium compared to its peers, trading at 74.57 times its projected earnings over the next 12 months, well above Pinterest's 19.39 and Snap's gains hold, Reddit is set to add more than $4 billion to its market cap.
The Star
01-08-2025
- Business
- The Star
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 jumped 15% before the bell 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's rosy outlook 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. The company expects third-quarter revenue of between $535 million and $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Reddit's focus on understanding user intent through authentic community conversations positions it to unlock new monetization opportunities, said Danni Hewson, head of financial analysis at AJ Bell. "Being able to home in on exactly the kind of consumer who might be open to splurge on what a seller is offering has made sites like Reddit hugely popular with advertisers," Hewson said. Reddit's results, along with those of Google and Meta, signal the ad industry's resilience in the face of growing economic uncertainty brought on by shifting U.S. trade policy. The company's diverse ad offerings, including ads inserting brands directly within conversations on its subreddit discussions, remain attractive to marketers. Reddit's daily active unique visitors increased 21%, with analysts saying stabilizing daily active user trends are bolstering investor confidence in the platform's "long-term growth narrative". Despite variable Google-driven traffic posing a headwind in the second quarter, Reddit's U.S. daily active users held steady, expressing confidence that the company's unique content was valuable to both Google and searchers, analysts at Piper Sandler said. The company has been investing in new products, search capabilities and international expansion to offset inconsistent user traffic. Reddit is currently valued at a premium compared to its peers, trading at 74.57 times its projected earnings over the next 12 months, well above Pinterest's 19.39 and Snap's 27.54. If premarket gains hold, Reddit is set to add about $4 billion to its market cap. (Reporting by Kritika Lamba and Rashika Singh in Bengaluru; Editing by Pooja Desai)
Axios
18-06-2025
- Business
- Axios
Business Insider CEO details post-layoff strategy
Business Insider's recent layoffs and changes were "very difficult" but necessary to put the business back on track, CEO Barbara Peng said at an Axios event at Cannes on Wednesday. "We have a responsibility to build a sustainable business. If we can't support ourselves, we actually can't do all the good journalism that we want to and really reach that potential," she said. Why it matters: Publishers are reckoning with declining search traffic across the media industry and reinvesting as they prepare for potentially even greater disruption from AI. What they're saying:"We had to let go of a lot of really talented people, and that's hard for an organization, but the reason we made these changes was because of our strategy," Peng said. "About a year and a half ago, I took us back to being Business Insider after we were Insider for many years and focused us back in on our core and our strengths and what people love about us, which is business, tech and innovation journalism," she said. Catch up quick: BI laid off 21% of its staff last month as the organization goes "all-in on AI." In May, Peng said in a staff memo that BI has launched several AI-driven products, including onsite search and paywall technology. "This just in general is not new for Business Insider. We were born in the moment that the smartphone launched, and it was really a moment that we embraced. We were very curious. We found joy in it. We tried things. We were risk tolerant, and we're approaching this moment exactly the same," she told Axios on Wednesday. Zoom in: Peng said BI has pulled back on areas that were sensitive to search traffic like its SEO- and Google-driven commerce business and has invested in new experiments like an AI-generated audio briefing. "You can imagine that this really opens up other times in the day, other audiences that wouldn't have had access to us," Peng said. Peng said BI's revenue will be more heavily weighted to subscription and events. Its audio briefing isn't yet monetized. "One of the things you have to think about especially with innovation and trying things is you kind of have to give a little bit of space for the product to launch and to take hold," Peng said. "If we can engage an audience, if we can bring them value, we can monetize it afterwards."
