Reddit's shares surged 15% 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 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,

Reddit is going to be leaning even harder into search in the coming months as Steve Huffman wants the site to become a "go-to search engine."

You can’t have artificial intelligence without actual intelligence,’ the social media boss said during a Q2 earnings call this week. Investors seem to agree. It’s an understatement to say that Reddit had an excellent second quarter.

Analysts are raising their Reddit price targets and reiterating their buy ratings after the social-media platform’s better-than-expected second-quarter results.