Reddit’s shares surged 15 per cent 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.

Reddit forecast third-quarter revenue above Wall Street estimates, betting on growing digital advertising driven by its AI-powered marketing tools.

Reddit stock climbed 15% Friday after it revealed its second-quarter results, with revenue up 78% year-over-year to about $500 million and EPS hitting $0.45, far surpassing Wall Street expectations. Most Wall Street analysts were impressed by the company’s ad business,