Reddit reports a solid quarter but shows signs of AI’s impact
Reddit reported a strong second quarter with revenue of $805 million and net income of $253 million, both exceeding expectations, while expecting revenue of $860 million to $870 million in the next quarter, which also beats guidance. However, the stock fell over 10% due to concerns about AI's impact on traffic and user engagement. CEO Steve Huffman highlighted that while search engine traffic is "choppy," the broader picture remains positive, and the company is considering a potential partnership with Google for AI training, though there are concerns about AI's effect on user traffic and engagement.
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