Two Rapidly Expanding Stocks with the Potential to Multiply Your Wealth Significantly
Reddit, the popular online discussion platform, has been making waves in the digital advertising market. In Q2, the company reported a staggering 84% year-over-year increase in ad revenue, and a 78% surge in overall revenue year over year. This growth indicates a promising outlook for potential high double-digit growth for many years to come.
The platform's success is not limited to advertising. Daily active unique users on Reddit grew by 21% year over year, reaching over 110 million. This growth is significant, considering Reddit is still a relatively small player in the vast digital ad spending market, which is estimated to be around $700 billion, with social media ad spending alone accounting for $276 billion.
Reddit's growth strategy extends beyond its core business. Its "other" revenue, which includes data licensing to AI model makers, grew by 24% year over year in Q2. The data collected by Reddit opens up growth opportunities to license its data to AI model makers, further expanding its revenue streams.
Meanwhile, SoundHound AI, a company specialising in AI-driven voice assistants, is also making strides. Founded in 2005, SoundHound recently added vision capabilities to its voice AI platform, expanding its potential use cases. With the addition of vision capabilities, SoundHound can now be used for equipment troubleshooting, retail inventory intelligence, and more personalized assistance while driving.
SoundHound's primary business channels, including automotive, AI customer service for enterprise, and restaurants, all posted strong growth. The company's stock has more than doubled over the past year, reflecting investors' confidence in its growth potential.
In Q2, SoundHound reported a 217% year-over-year increase in revenue. Despite continued losses on the bottom line, SoundHound's adjusted EBITDA losses narrowed, and management expects to turn a profit by the end of the year. The long-term growth opportunity for SoundHound is bigger than originally thought due to the addition of vision AI to its voice capabilities.
The ability to potentially capture interest from almost anyone in the world looking for information online could make Reddit a significantly more valuable platform over the long term. As Reddit continues to grow and innovate, it remains to be seen how it will shape the digital advertising landscape in the coming years.
On the other hand, SoundHound's expansion into vision AI could open up a plethora of opportunities in various industries, making it a compelling player in the AI market. With its strong revenue growth rates, particularly from sales to quick-service restaurants and leading automakers, SoundHound AI is poised for continued success.
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