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Reddit is increasing its efforts to block marketing spam from appearing in user feeds. The platform will now use new tools to identify and limit the reach of low-quality posts that look like ads but are disguised as regular community content.
This move matters because Reddit's value depends on its reputation for authentic human conversation. If the feed becomes cluttered with automated marketing or "slop," users may spend less time on the site, which would eventually hurt the company's ability to sell real advertisements. By prioritizing the quality of the feed, Reddit is protecting the community trust that makes its data so valuable to advertisers and AI developers.
A judge ruled that Anthropic, a major artificial intelligence company, is contractually bound by Reddit's user agreement. This is a win for Reddit as it tries to stop AI firms from "scraping" or taking its users' conversations for free to train their AI models.
This matters because Reddit's business now relies on selling licenses to its data. If a court confirms that AI companies must follow the site's rules even if they don't have a paid deal, it gives Reddit more power to force those companies to pay for the data they use. It protects a growing source of profit that is separate from traditional advertising.
Source: Barrons
BNP Paribas set a price target of $180 for the stock, which is about 18 percent higher than where it trades today. This is more conservative than the average analyst target of $203. While the firm sees room for the stock to rise, its outlook is less aggressive than many of its peers who are tracking the company's growth in advertising and AI data licensing.
Source: BNP Paribas
The European Commission, the body that sets and enforces rules for the European Union, has added Reddit to its list of very large online platforms. This means the company must now follow the strictest level of the Digital Services Act. These rules are designed to make big tech companies more accountable for the content on their sites and require them to do more to protect users and prevent the spread of illegal material.
For Reddit, this adds a layer of legal work and higher costs to stay in line with European law. While the company is already used to moderating its communities, these rules often come with heavy fines for those who fail to meet the EU's specific standards for transparency and risk management. It is a sign that as Reddit grows its international user base, it will face much more oversight from governments outside the United States.
Source: Reuters
Morgan Stanley lowered its price target from $240 to $210 on Friday. A price target is what an analyst thinks a stock will be worth in the future. Even with the lower target, the firm still expects the stock to rise about 37 percent from its current price. The new target is slightly higher than the average across all Wall Street firms, which currently sits at $204. This move looks like a routine adjustment to match the stock's recent price swings rather than a change in how the firm views the business itself.
Source: Morgan Stanley
Management has a habit of setting bars they can easily clear, with seven beats in the last eight quarters. The business is currently outrunning even the most bullish forecasts.
| Expectation | |
|---|---|
| EPS | $1.30 |
| Revenue | $872M |