FINWIRES · TerminalLIVE
FINWIRES

Reddit to Overcome Search Pressure as Ads, AI Licensing Support Growth, Wedbush Says

By

Reddit (RDDT) should continue to grow despite weaker search traffic, helped by improving ad products, higher-value app users, stronger profits and potential AI licensing deals, Wedbush said in a note Friday.

The recent drop in US daily active users appears temporary rather than a long-term problem, and Reddit is expected to gain more control over traffic by moving more users directly to its app, Wedbush said, adding that improving app retention, better feed recommendations and conversion of web visitors into app users should support daily user growth and stronger engagement over time.

The investment firm raised its Q3 revenue estimate by 5%, citing continued improvement in advertising products and monetization after Q2 revenue came in 10% above consensus, expecting Reddit's ad business to remain a key growth driver as Reddit Max gains more advertisers and newer ad products help the company generate more revenue from its user base.

Reddit is expected to retain bargaining power in future AI data licensing talks because its content remains useful for model training, with potential buyers extending beyond Alphabet's (GOOG, GOOGL) Google and OpenAI, according to the note.

Wedbush cut its price target to $221 from $250 and maintained an outperform rating for Reddit while keeping it on the Best Ideas List.

Price: $135.45, Change: $-42.60, Percent Change: -23.92%

Related Articles

Wire

Update: BHP Group Faces Strike Action in Western Australia's Pilbara

(Updates to add BHP's statement in the fourth and fifth paragraphs and share movement in the last paragraph)BHP Group (ASX:BHP) is facing another strike from members of three unions in Western Australia's Pilbara region who have decided to impose a 24-hour ship-loading ban on Aug. 8 and will also down tools on Aug. 9, according to multiple media reports on Friday.According to an Australian Financial Review report, the company expects that a work stoppage at Port Hedland will impact AU$120 million in revenue per day.The combined union decision comes after a failed strike over pay disputes that took place on July 16, which was not attended by enough workers to cause a serious disruption.In response to' request for comment, a BHP spokesperson said that the company has plans in place to continue operations despite the potential disruptions.The company has a formal meeting convened by the Fair Work Commission scheduled for next Tuesday to progress bargaining and will seek further assistance from the Commission if needed, the spokesperson added.The company's shares rose almost 2% in recent Friday trade.

ASX:BHP
Wire

Cohu Q2 Adjusted Earnings, Revenue Rise; Shares Jump After Hours

Cohu (COHU) reported Q2 adjusted earnings late Thursday of $0.26 per diluted share, up from $0.02 a year earlier.Analysts polled by FactSet expected $0.14.Revenue for the quarter ended June 27 rose to $149 million from $107.7 million a year ago.Analysts projected $144.2 million.Cohu expects Q3 revenue of $170 million, plus or minus $7 million.Analysts project $146.4 million.Cohu shares jumped 21% in after-hours trading.

$COHU
Wire

Western Union Q2 Adjusted Earnings, Revenue Fall; Cuts 2026 Outlook

Western Union (WU) reported Q2 adjusted earnings Thursday of $0.31 per diluted share, down from $0.42 a year earlier.Analysts polled by FactSet expected $0.42.Revenue for the quarter ended June 30 was $1.01 billion, compared with $1.03 billion a year earlier.Analysts expected $1.02 billion.The company now expects 2026 adjusted EPS of $1.25 to $1.35, down from $1.75 to $1.85. Analysts expect $1.72.Full-year revenue is now expected to grow 3% to 5%, compared with 5% to 8% expected earlier.

$WU