Reddit reports a solid quarter but shows signs of AI’s impact

Reddit reported a 61% revenue increase to $805M and a 183% rise in net income to $253M in Q2, surpassing expectations. However, CEO Steve Huffman noted volatile search engine traffic, raising investor concerns about AI's impact on user referrals and U.S. daily active users. Reddit's partnership with Google for AI training is under review amid fears AI summaries reduce Reddit's audience share.