Reddit Inc. (RDDT) shares climbed 5.06% in Friday's trading session, closing at $167.86 amid investor optimism over the company's newly launched AI product "Reddit Answers".

The online community platform unveiled Reddit Answers this week, a conversational AI tool that allows users to search for information from Reddit's vast database of posts and conversations in a more intuitive way. The launch is part of Reddit's broader AI strategy to enhance user engagement and boost advertising revenue potential.

Analysts view Reddit Answers as a pivotal step for the company to capitalize on the accelerating AI adoption across the technology and media sectors. By leveraging its proprietary data to train the AI model, Reddit can offer a more tailored experience and keep users within its platform ecosystem.

"Reddit is positioning itself as a pioneer in AI-powered content curation and discovery," said Victor Anthony, an analyst at Nugget Securities. "The ability to surface relevant information from Reddit's unique community-driven content could be a major competitive advantage as the AI race heats up."