Reddit forecasts strong revenue as AI tools drive ad sales

Reddit forecast first-quarter revenue above analysts’ estimates on Thursday, as artificial intelligence-powered enhancements to its ad platform help the social media platform draw more marketers.

Shares of the company rose 4% after-hours as Reddit also announced its maiden share repurchase plan of up to $1 billion.

Reddit allows ad placement directly within subreddit discussion threads, driving ad spending on the platform as brands aim to reach highly engaged and niche communities...