11 AI Stocks That Should Be On Your Watchlist

5. Reddit Inc (NYSE:RDDT)

Number of Hedge Fund Holders: 52

Reddit Inc (NYSE:RDDT) is an American social news aggregation, content rating, and forum social network. The company’s primary business model leverages its vast content archive to license data for training artificial intelligence models. On January 21, Raymond James raised the firm’s price target on Reddit to $200 from $150 and kept a “Strong Buy” rating on the shares. The rating has been issued as the firm is largely bullish on the Internet sector. Analysts told investors in a research note that the year ahead is important for the growth and use of generative AI in businesses.

Back in November, Reddit Chief Operating Officer Jen Wong told CNBC that the company is looking to expand its advertising business and attract more users outside its core US market. In this regard, analysts at Raymond James highlighted that the company’s use of AI to automatically translate its site text to different languages “should help improve local search rankings for Reddit and provide durable hypergrowth”. In this regard, Wong noted that Reddit’s AI translation efforts are key to its international expansion. The analysts also said that Reddit continues to be one of the top five most searched websites. Its “authentic and uniquely moderated (community system) content” will help the company stay on top of search results, ultimately resulting in more Reddit users creating accounts, the analysts wrote.