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Cantor Fitzgerald Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price
- On Thursday, Reddit reported second-quarter revenue of $805 million, a 61% year-over-year increase that beat Wall Street estimates, and issued third-quarter guidance of $860 million to $870 million.
- The company's advertising business grew 64% year-over-year as Reddit launched AI-powered tools including Tailored Creative Assets and a Free-form Ad Generator to improve campaign performance.
- Global daily active unique users jumped 18% to 130.3 million, while weekly active users surpassed 514.6 million for the first time, with COO Jen Wong noting product improvements are converting lower-engagement visitors into loyal app users.
- Despite gains, CEO Steve Huffman acknowledged that "search referrals were choppy" due to SEO headwinds, while Wong noted algorithm changes "more than offset" user acquisition efforts.
- Reddit positions its moderated communities as an "antidote to an automated web," while CEO Huffman stated regarding Google and OpenAI licensing: "I don't think there's any simple binary decision here.
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Reddit ads boom according to latest quarterly data
Reddit’s advertising business grew 64% year-on-year in the second quarter, the publishing platform has told US investors.The company, which became publicly listed two years ago, reported US$762 million (A$1 billion) in advertising revenue for Q2, driven by higher pricing and impressions.Advertising revenue accounted for the bulk of Reddit’s total revenue, which rose 61% to US$805 […]
·Chippendale, Australia
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Coverage Details
Total News Sources25
Leaning Left2Leaning Right2Center7Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 18%
C 64%
R 18%
Factuality
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