BUSINESS

AI is a powerful brainstorming tool when used correctly. Here’s how to write better prompts and refine ideas more effectively.

The Los Angeles Dodgers’ veteran visited Donald Trump in the White House last year, along with the vast majority of his teammates.

Once an elite lacrosse player, David Morrow took what he learned at Warrior Sports and built Lume into the biggest cannabis company in Michigan, with a plan to go national. “They’re not ready for this knife fight.”

Reddit (RDDT) is generally considered a social-media stock.That may understate the opportunity.Reddit won social media ad share in the second quarter, bolstered by contextual targeting, a high-intent audience, and incremental reach, Jefferies underlined. But the hidden investor implication is wider than just a few advertisers moving dollars. Reddit may be constructing something like a search-ad business inside of a social platform.That’s key: Search dollars follow purpose. Advertisers pay more when users are studying, comparing, or getting ready to buy, and Reddit’s forums have plenty of those moments.The next test is upon us. Reddit said it will report second-quarter results after the market closes on July 30, giving investors a fresh look at whether agency momentum is becoming revenue growth.“Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation,” Reddit CEO Steve Huffman said in the company’s first-quarter earnings release.Reddit’s ad gains are really about intentDigital advertising has always rewarded scale. That’s why you hear so much about Meta Platforms, Google, and TikTok dominating the ad-market chatter. They have reach, data, automation, and the ability to absorb giant budgets.Reddit’s angle is different. The company is not just suggesting it can reach a wide audience. It says it can reach people when they’re asking inquiries, comparing items, reading reviews, and searching for actual human responses.That is why the checks from the Jefferies agency are important.Jefferies noted that agencies saw greater digital ad growth in the second quarter, with Reddit being mentioned as a platform taking more social-media expenditure. Agencies cited contextual targeting, high-intent audiences, and incremental reach as reasons why advertisers were shifting funds to Reddit.That’s a stronger narrative than just gains from ad-share. Reddit isn’t just fighting for social dollars; it is also gaining intentional users, and advertisers are buying Reddit because of that. It is also heading toward the performance rationale that makes search such a compelling advertising vehicle.Related: Google gives Reddit surprising tailwindReddit’s own metrics are drawing investors’ attention. Revenue jumped 69% to $663 million in the first quarter, the business reported, with ad revenue up 74% to $625 million. Daily active uniques jumped 17% to 126.8 million, and adjusted EBITDA rose 131% to $266 million.Those numbers are significant because Reddit is still figuring out who it is as a public company.A social platform can attract investor interest with the right user growth. A social platform that can demonstrate fast ad growth, good gross margins, and expanding free cash flow can begin to have a new valuation conversation.Reddit’s gross margin was 91.5% in the first quarter, compared with 90.5% a year earlier, the business said. It produced $312 million in operating cash flow as well, a 145% year-over-year increase.That puts the stock in a better position heading into earnings.The question isn’t just whether Reddit is growing. It’s whether Reddit is becoming a more efficient ad platform and whether advertisers are on the hunt for new areas to discover intent.Reddit’s tools aim to turn conversations into conversionsReddit’s advertising opportunity has always had one huge drawback. Advertisers may love the audience, but performance budgets need proof.That’s why the company’s updated ad tools matter. Reddit needs to make its messy, human conversations easier to buy, easier to measure, and easier to tie to sales.In May, Reddit said its native Shopify integration became widely available to global advertisers. The integration enables merchants to connect Reddit Ads accounts to Shopify storefronts, configure a codeless Reddit Pixel, and automatically synchronize product catalogs, including images, live pricing, descriptions, and inventory levels.It seems complicated, but the investor’s point is easy.If Reddit is serious about higher ad budgets, it can’t just count on brand campaigns or experimental spends. It requires technologies that help advertisers swiftly begin ads and measure if Reddit users become customers.More Social Media:Meta launches smart glasses cheaper than Ray-BanMark Zuckerberg admits mistakes in leaked memo after Meta layoffsMark Zuckerberg and Meta face first tough test after layoffsReddit’s move into Shopify gives the company a more direct line into retail and e-commerce spending.A TransUnion study indicated that performance results on Reddit in North America produced more than two times the incremental return on ad expenditure versus the media-plan average, the business said. Reddit also referenced studies that show users are 62% more inclined than the average American to shop daily.Investors should be wary of marketing data published by companies.But those indicators are part of the reason why agency checks matter to Jefferies. It’s not only that Reddit has communities, but also that those communities might be valuable commercially, and that’s why advertisers seem to be testing it.Reddit has also been implementing automation. Its MAX campaigns automate targeting, creative selection, placements, and budget allocation. Early testers witnessed a 17% drop in cost per acquisition and a 27% increase in conversions, on average, versus business-as-usual ads, Reddit stated.And that’s important because Meta and Google trained marketers to anticipate automation.Reddit does not need to mimic those companies exactly. It must demonstrate that its community data and discussion context can add value to automation.This is the actual test of the ad platform: Can Reddit turn the intent that users are already showing in communities into a repeatable performance for advertisers?

Reddit may be turning conversations into ad dollars.Spencer Platt / Getty Images

Reddit’s next test is search-budget credibilityThe most relevant portion of the Jefferies readout might not be social media ad share but search.Agencies are keen to test Reddit’s search advertising product, anticipated later this year or early next year, Investing.com said. The tool will enable Reddit to access funds set aside for performance and search objectives while improving targeting and brand safety.That’s the bull case brief.Search advertising is powerful because users tell us what they want. They enter the product, inquiry, comparison, or problem into a search box.Reddit has its own interpretation of the signal. Users ask other users what to buy, what to avoid, which product is better, which service is worth the money, and how to handle certain difficulties. This is not a standard search but can have a comparable commercial motive.Reddit also markets itself to advertisers as a place to “reach people ready to buy,” saying it has well over 490 million weekly visitors and calling itself the “No. 1 platform for product conversations.”And that is why the search-ad opportunity matters.If Reddit can package community intent as a commodity marketers trust, it may compete for budgets that are more valuable than conventional social media awareness campaigns.Key takeaways for Reddit investorsJefferies says Reddit gained social-media ad share in the second quarter.The bigger implication is that advertisers may see search-like intent inside Reddit communities.Reddit’s first-quarter ad revenue rose 74% year over year to $625 million.Shopify integration and Dynamic Product Ads could help Reddit win more performance budgets.Max campaigns show Reddit is building automation tools advertisers already expect.Reddit’s July 30 earnings report will test whether agency interest is showing up in revenue.Those findings give a more sober view of advertising.Reddit is no longer merely selling itself as a place where communities congregate. It’s attempting to make those communities measurable for advertisers.It provides opportunity, but also increases the bar. Advertisers can try just about anything once. The question is whether Reddit can transform those tests into repeatable budgets.That will mean improved measurement, more automation, more robust brand safety tools, and confirmation that advertisers can drive performance at scale.Agencies are interested, the Jefferies note says. If that interest is translating into a sustainable business trend, the earnings report will tell us.Reddit’s ad edge still has to prove it can scaleThe best thing about Reddit is also the worst thing about Reddit.The platform is based on human speech. That’s why users trust it and advertisers get distinct intent signals.And it’s also why Reddit has to do more to convince companies that advertisements will show in the correct context than cleaner, more controlled platforms.And here starts the next chapter of the story.If Reddit can make community-driven ad inventory easier to acquire, easier to measure, and safer for sponsors, the firm might continue to take share from platforms that feel more saturated.If it can’t, the Jefferies agency checks may turn out to be nothing more than an early flash of enthusiasm and not a durable shift.The official numbers allow Reddit an opportunity to make the bull argument. Revenue is growing quickly. Ad revenue is outpacing total revenue. Profitability has improved. Shopify integration and Max campaigns show management is building tools advertisers need.But investors should not confuse a promising setting for a finished story.The next question is whether Reddit can transition from an experimental line item on media plans to a core performance channel. That’s why this tale is relevant for regular investors.Reddit’s chance may not just be about snatching social media bucks from LinkedIn, Pinterest, Snapchat, or X.The real prize is search-like purpose. If Reddit can land that amount, its ad business could be stronger than the market thinks.Related: Reddit CEO delivers bold warning to Google and OpenAI

House of the Dragon Season 3 premieres this weekend on HBO and Max. Here’s what time the new episode airs, plus a full recap of Seasons 1 and 2 to catch you up.

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealGetting around town doesn’t always require getting behind the wheel. For many people, finding alternatives can offer a practical and affordable solution that not only saves on gas but can also save on time finding parking spots in town. An electric scooter offers a functional way to shorten a daily commute, travel across a college campus, run errands, or cover the distance between public transportation stops without having to lug a bike around. It’s also a fun option for weekend rides through the neighborhood, trips to the local coffee shop, or an easy way to get to the neighborhood pool. Compared to driving, a compact scooter is easier to store, quicker to park, and convenient to bring along while traveling, especially for short trips down the street that are a bit too far to walk but still too close to drive. For commuters and recreational riders, having a portable form of transportation can save time while making everyday travel a bit more flexible. If this type of easy and convenient transportation sounds like a good fit for you, the Aovowheel Electric Scooter is a useful choice. With a portable, folding design and Bluetooth features, it’s the perfect option to cruise around town. This scooter is on sale at Amazon for just $160, plus $10 shipping, saving shoppers 41% off the original price.Aovowheel Electric Scooter, $160 (was $270) at Amazon

Courtesy of Amazon

Shop at AmazonWhy do shoppers love it?With a top speed of 19 miles per hour, this scooter is a solid option to get around town or the neighborhood. It can handle inclines of 20 degrees and uses a high-capacity battery that can be recharged in about four hours. Designed for adults, it can support up to 265 pounds and has a UL2272 certification, which ensures the device’s electrical system can withstand extreme conditions and heightens safety. It also combines a dual-braking system with front electronic brakes and rear drum brakes that provide solid and dependable stopping power. The bright headlight and taillight improve visibility, while the dual suspension systems help absorb bumps along the road. The 8.5-inch tires are designed to provide an easy ride without worrying about maintenance, as they are solid instead of air-filled tires.Related: Amazon’s bestselling electric scooter is on sale for only $160Tons of features are accessible via the Vicont app, offering smart technology cruise control, riding modes, speed limit setting, and more, although the scooter can be used without the app, too. It also features an LCD display that shows speed, battery level, and distance traveled. With the foldable design, this scooter is super convenient and offers an easy alternative to driving. It’s easy to throw into the back of the trunk for traveling to bigger cities, where parking may be limited upon arrival, and it makes a great addition to keep in your car in case of an emergency, like running out of gas. The pros and cons of this electric scooterProsSpeedy: The motor reaches a speed of up to 19 miles per hour, allowing you to get around town quickly. Super portable: This scooter offers a convenient foldable design and weighs about 30 pounds.Cons Some smart features require an app: Although the scooter works without it, some features are only accessible with the Vicont app that needs to be paired with the scooter.The solid tires offer a firmer ride: Because the tires are not inflatable, they do not absorb road bumps as well.One reviewer said, “I’ve been using this scooter for about a month now, and I’ve only needed to charge it for the second time. I ride around 30 minutes a week, and the battery life has been much better than I expected. The ride feels smooth, and it has been reliable for my daily use.”Shop more dealsAyolny Electric Scooter, $200 (was $240) at AmazonVolpam Electric Scooter, $140 (was $220) at AmazonVie Velo Scooter and Bike Lock, $12 (was $15) at AmazonWhether you’re looking into getting an electric scooter for fun, for travel, or for emergencies, the Aovowheel Electric Scooter offers affordable convenience, ease, and portability. The folding design allows you to keep it in your car or take it on the bus, and the four-hour charge time is easy during the workday or overnight. At 41% off, this is a fantastic deal for an electric scooter. Shoppers pay just $160 plus $10 shipping and get to save on gas.

Hackers switch their prompts to less common natural languages to avoid AI safety features. AI makers are coping with it

The U.S. hit Iran for the third time this week and Tehran has reportedly closed the Strait of Hormuz again.

Ripple’s Brad Garlinghouse says he and co-founder Chris Larsen considered winding the company down and handing its XRP to shareholders before deciding to fight the 2020 lawsuit.

The BIP 110 proposal would cap arbitrary data on Bitcoin for a year, but Saylor, Adam Back and others say turning a spam dispute into a consensus fight could create a bigger risk than the spam itself.