Reddit shares soar after company turns first-ever profit

Reddit reported its first quarterly profit as a publicly traded company, $29.9 million on revenue of $348.4 million, up 68%, and its shares rose more than 35% the next day. CEO Steve Huffman said a new AI feature translating English posts into French, Spanish, Portuguese, Italian and German drove user growth to nearly 100 million monthly users, up 47% from the year before, according to his shareholder letter. The company forecast current-quarter revenue above Wall Street estimates, helped by content licensing deals with Google and OpenAI. Jeremy Goldman of eMarketer said those AI deals are good for stability but will not fuel long-term growth.