Shares of the social media player gained nearly 5% in midday trades on the stock market today. Reddit stock lost more than 10% Wednesday after a third-party research report indicated that the hit generative AI bot ChatGPT was citing Reddit's user posts less frequently in responses. Reddit stock lost another 1% Thursday. The stock is still down 13% for the week. In a note to clients late Thursday, Piper Sandler analyst Thomas Champion reiterated an overweight, or buy, call for Reddit with a 290 target price ...

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of Reddit, Inc. related to misrepresentation of user traffic and advertising revenue outlook due to changes in Google Search algorithms [1] Group 1: Allegations Against Reddit - Insiders at Reddit allegedly caused the company to misrepresent or fail to disclose significant impacts from changes in Google Search's algorithm, which led to a decline in user queries directed to Reddit [1] - The changes in Google Search's algorithm and features, such as AI Overview, were materially different from previous instances that caused reduced traffic to Reddit [1] - Insiders were reportedly aware that the increase in search queries for "Reddit" was due to users finding answers directly on Google Search, rather than intending to visit Reddit [1] - The phenomenon of zero-click searches was significantly reducing traffic to Reddit, which the company could not counteract in the short term [1] - As a result, insiders lacked a reasonable basis for their outlook on user rates and advertising revenues [1]

Core Insights - The article emphasizes the importance of verifying information about Answer Engine Optimization (AEO) through personal experimentation rather than relying on potentially inaccurate online best practices [2][3] - AEO is closely related to traditional SEO but requires a focus on citation optimization and long-tail questions to be effective [5][8] - The rise of AEO is attributed to the increasing adoption of AI models like ChatGPT, which have changed how users seek information [10][52] Group 1 - AEO is fundamentally about optimizing content to appear as answers in large language models [9][10] - High-quality, authentic comments on platforms like Reddit are more effective than numerous low-quality comments for AEO [3][24] - The distinction between AEO and SEO lies in the need for citation optimization and addressing long-tail questions [5][14] Group 2 - AEO strategies should include both on-site optimization (like improving help center content) and off-site optimization (like increasing mentions across various platforms) [22][58] - The average length of user queries in chat scenarios is significantly longer than traditional search queries, indicating a shift in user behavior [19][20] - Companies can quickly gain visibility in AEO by being mentioned in relevant discussions or content, unlike the longer timeline required for SEO [19][45] Group 3 - The effectiveness of AEO can be measured through experiments that compare the impact of different strategies on visibility and traffic [36][44] - AEO is not a replacement for Google but rather a new channel that complements existing search methods [50][51] - The quality of leads generated through AEO is significantly higher than those from traditional search, with conversion rates being six times greater [16][47] Group 4 - Companies should focus on creating original, high-quality content that provides unique insights to stand out in AEO [32][33] - The optimization of help center content is crucial, as many user queries are related to specific product functionalities and support [58][60] - AEO requires continuous adaptation and validation of strategies to ensure effectiveness in a rapidly changing digital landscape [36][46]

Social media platform Reddit was down for nearly 10,000 users in the U.S. on Monday, according to outage tracking website Downdetector.com. ...

Key Points A team of analysts made a bullish move on the company's stock. It added $20 to its price target on the shares. 10 stocks we like better than Reddit › Internet discussion forum operator Reddit (NYSE: RDDT) was the talk of numerous investors on Thursday, and for the most part, the chatter was positive. The company's share price rose by nearly 1% -- good enough to notch an all-time high -- thanks in no small part to a bullish move from a researcher on Wednesday afternoon. That increase more ...

This story was originally published on Social Media Today. To receive daily news and insights, subscribe to our free daily Social Media Today newsletter. As it seeks to highlight its potential for brands from an expanding array of industries, Reddit has shared some key insights from its recent Health Summit event, where it presented the latest Reddit usage and trend data to more than 170 brand representatives from the healthcare and pharmaceutical industries. And if your business is looking to reach this s ...

Core Concept - Tencent Research Institute introduces the concept of "Information Hive" to counter the "Information Cocoon" phenomenon, emphasizing active user participation in a collaborative information ecosystem [1][20]. Group 1: Characteristics of Information Hive - The "Information Hive" promotes diverse information sources, allowing users to navigate multiple channels rather than being limited to algorithmic recommendations [3][13]. - It encourages strong user agency, enabling users to actively explore and select information rather than passively consuming content [4][5]. - Collaborative construction is emphasized, where users not only consume but also create, disseminate, and evaluate information, shaping the ecosystem collectively [6][7]. Group 2: Design and Functionality of Information Products - Effective information products should facilitate user-generated content, ensuring diverse perspectives are included in the ecosystem [8][10]. - The design should promote interconnectivity among different "hives," allowing free flow of information rather than being restricted by algorithms [9][10]. - Technical measures such as open APIs, cross-platform tools, and standardized content formats are essential for enhancing information accessibility and interaction [10][11]. Group 3: User Behavior and Engagement - Users should be guided towards proactive exploration and utilizing multiple entry points for information, avoiding reliance on a single information stream [12][21]. - Encouraging community collaboration and feedback mechanisms can enhance user engagement and knowledge sharing across different platforms [11][12]. - The focus should be on creating a dynamic, responsive information ecosystem that adapts to user needs and promotes long-term knowledge accumulation [20][22]. Group 4: Examples of Information Hive Products - Wikipedia exemplifies an "Information Hive" product with its open collaborative editing model, allowing users to contribute and access knowledge freely [13]. - Quora and Douban serve as platforms that encourage active user participation and diverse knowledge sharing through community interactions [14][15]. - Reddit functions as a network of diverse communities, enabling users to engage in discussions and share information across various topics [15][16]. Group 5: Future Directions - The concept of "Information Hive" is still in its early stages and requires further empirical research to solidify its theoretical foundation and practical applicability [20]. - The optimization of information ecosystems should focus on enhancing user agency, promoting diversity in content, and fostering collaborative knowledge creation [21][22].

Competitive Landscape - OpenAI's ChatGPT issues warnings before opening ".com" websites, but not before accessing platforms like Facebook, Instagram, LinkedIn, Reddit, or YouTube [1] - OpenAI's actions suggest a competitive strategy that makes it harder for users to visit ".com" websites [2] - ".com" is the 6th most visited website globally [2] Data & Legal - OpenAI potentially trained GPT models using Twitter data illegally [2]

Core Insights - Reddit has reported its most profitable quarter with significant revenue growth and user engagement [2][3] - The company is focusing on international expansion and leveraging AI to enhance its platform [8][9] Financial Performance - Reddit's revenue for the second quarter reached $500 million, representing a 78% increase year-over-year, marking the fastest quarterly growth since 2022 [2] - Daily active users increased by 21% to 110 million, with a profit of $89 million and earnings per share of $0.48, compared to a loss of $10 million and a loss per share of $0.06 in the same quarter of the previous year [3] Future Guidance - For Q3, Reddit projects revenue between $535 million and $545 million, indicating a 55% year-over-year growth [5] - The company is targeting international markets, with international revenue increasing by 71% to $91 million in the second quarter [8] Strategic Initiatives - Reddit is implementing machine translation to expand its presence in Asia, Europe, and Latin America, aiming to support around two dozen languages [8] - The introduction of the Reddit Answers tool, an AI-driven search engine, has seen user growth from 1 million in Q1 to 6 million in Q2, enhancing the platform's relevance [9] Investment Considerations - Despite strong performance, Reddit's stock is considered expensive compared to competitors like Meta and Snap, with a 260% increase in the last year [10] - While Reddit is viewed as a solid investment, it is suggested that potential investors wait for a more favorable buying opportunity [11]

Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500 million, marking the fastest quarterly growth rate since 2022 [7][28] - Daily active users increased to 110 million, up 21% year over year, with growth in both the U.S. and international markets [7] - Adjusted EBITDA reached $167 million, with a margin of 33%, up over 1,900 basis points year over year [28][29] - GAAP net income was $89 million, translating to $0.48 per basic share [40] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465 million, driven by broad-based strength across the business [20][31] - Other revenue, including data licensing, reached $35 million, growing 24% year over year [31] - Average revenue per user (ARPU) increased 47% year over year to $4.53 [31] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [31] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [34][38] - The company is deprioritizing some initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the unique role Reddit plays in human conversation and its potential for growth [8][10] - The company sees a significant opportunity in becoming a trusted source of information in an increasingly automated world [10][12] - For Q3 2025, the company estimates revenue in the range of $535 million to $545 million, representing 54% to 56% year-over-year growth [41] Other Important Information - The company is investing in machine translation to unlock Reddit for millions of users across various regions [16] - The launch of new products like Dynamic Product Ads and Reddit Insights is expected to enhance advertiser performance and user engagement [22][24] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment and expressed excitement about the quality of the team [43] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [45] Question: How are U.S. user trends evolving? - There was a slower start in April, but traction improved throughout Q2, with higher daily active users reported in July [53][54] Question: What innovations are expected in the advertising business? - Exciting developments include Dynamic Product Ads and automation features that enhance advertiser onboarding and performance [56][57] Question: How is the search experience evolving with Reddit Answers? - The company is unifying the search experience to integrate Reddit Answers, making it more accessible for users [63] Question: How have advertiser relationships evolved? - The company has created a global accounts team to better service larger clients and is seeing increased demand for integrated advertising solutions [66] Question: What are the key learnings from marketing efforts? - There is a need to build awareness and consideration, especially outside the U.S., and to create a unique search experience on Reddit [75][78]