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'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’s recently launched A.I. marketing tools are already fueling strong advertising growth. In the latest quarter ended June, the social media company reported a 78 percent year-over-year revenue increase to $500 million,

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.

Reddit is going to be leaning even harder into search in the coming months. The company has already been working on a plan to integrate its LLM-powered search into its main search feature, but CEO Steve Huffman said he wants users to think of the site as an actual search engine.

In his Q2 letter to shareholders, Reddit CEO Steve Huffman said the company will integrate its search function with Reddit Answers -- currently available in the US and 11 other countries -- "into a single search experience.