FINWIRES · TerminalLIVE
FINWIRES

Reddit Seen Benefiting From User Growth, Ad Momentum, AI Deals, Wedbush Says

By

Reddit (RDDT) is expected to deliver strong Q2 results, driven by faster US user growth, improved advertising tools and stronger AI licensing terms, Wedbush Securities said Thursday in a report.

Reddit's investments in feed quality, app speed, new-user activation and search are seen moving US daily users closer to management's target of 100 million, while Reddit Max, search ads, Dynamic Product Ads and its Shopify integration help attract more small businesses and retailers, the report said.

Reddit Answers is expected to keep gaining users, and the search product may create another source of advertising revenue over time, with Alphabet's (GOOG, GOOGL) Google and OpenAI content licensing as another possible growth driver, Wedbush said.

Reddit and Google will likely maintain their relationship and may build deeper links because posts written by users add value to AI search results, the report said.

Wedbush added Reddit to its "Best Ideas List" and maintained its outperform rating with $250 price target on the stock. Q2 results are expected July 30.

Price: $169.94, Change: $-0.44, Percent Change: -0.26%

Related Articles

Wire

Eden Innovations Says Amrize Requests Installation of Additional Automated Dispensing Equipment Setups in US, Canada

Eden Innovations (ASX:EDE) said Amrize requested its wholly-owned US unit to install additional EdenCrete Pz7 bulk storage tanks and automated dispensing equipment at three concrete plant locations in Texas, Minnesota, and the greater Toronto area in Canada, according to a Thursday Australian bourse filing.The installations are accompanied by orders for the supply for EdenCrete Pz7, totaling around $32,000.Eden Innovations' shares climbed 2% in recent trading on Thursday.

ASX:EDE
Wire

Wesfarmers Faces Return Uncertainty at Western Australia Project Amid Price Volatility, Jefferies Says

It remains unclear whether Wesfarmers (ASX:WES) will generate an acceptable return on investment from the Covalent Lithium project in Western Australia due to uncertainty and volatility in lithium prices, Jefferies said in a Wednesday note.The project is an integrated operation comprising the Mt Holland mine and concentrator and the Kwinana refinery.The company recently approved a final investment decision to expand the Mt Holland mine and concentrator capacity with joint venture partner Sociedad Quimica y Minera de Chile.The expansion will increase nameplate spodumene concentrate production to 760,000 tonnes per year from about 380,000 tonnes per year on a 100% basis, while reducing unit operating costs and accelerating cash flows.Wesfarmers said its share of capital expenditure for Mt Holland is estimated at between AU$645 million and AU$715 million in nominal terms to be funded through existing cash and debit facilities.The company incurred roughly AU$2.8 billion of costs related to the project, Jefferies said.Jefferies maintained a hold rating and AU$73 price target on Wesfarmers.Wesfarmers shares fell nearly 2% in midday trade Thursday.

ASX:WES
Wire

oOh!media Signs Out-of-Home Content Agreement With Cricket Australia for 2026, 2027 Test Season

oOh!media (ASX:OML) said Thursday signed an out-of-home content agreement with Cricket Australia to deliver official cricket news, match countdowns, highlights, and live scores across the entire 2026 to 2027 Australian NRMA Insurance Men's Test season.The company in a statement said that the program will keep fans connected with the game across oOh!'s full digital network comprising airports, billboards, retail centers, street furniture, rail, offices and study environments while creating new opportunities for brands to align with live sporting moments.The company's shares fell past 2% in recent Thursday trade.

ASX:OML