Reddit (RDDT) stock is soaring 5.09% in Wednesday's trading session, building on the momentum from Tuesday's impressive rally. The continued upward movement comes as investors react positively to the company's announcement of two new artificial intelligence-based advertising tools.

The social media giant unveiled two groundbreaking AI tools on Tuesday: Reddit Insights and Conversation Summary Add-ons. Reddit Insights is a real-time sentiment analysis tool that transforms user posts and comments into structured data, providing brands with valuable trend insights for marketing planning. The tool's practicality has already been validated by the globally renowned advertising group Publicis as an exclusive Alpha tester. Meanwhile, the Conversation Summary Add-ons feature allows brands to showcase user-generated "positive" content beneath ads, enhancing the integration of advertisements with community sentiment.

These innovative tools are expected to reshape the community marketing paradigm, leveraging Reddit's ecosystem of 250 million monthly active users. The global AI advertising market is projected to exceed $10.32 billion by 2031, with a compound annual growth rate of 39.7%. Analysts suggest that Reddit's technological upgrade may provide it with a first-mover advantage in the increasingly intelligent programmatic advertising landscape. Despite recent concerns over slowing user engagement growth, the market's enthusiastic response to these AI initiatives signals renewed confidence in Reddit's ability to monetize its vast user base and capitalize on the burgeoning AI advertising market.