15 AI News Investors Should Not Miss

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11. Reddit Inc (NYSE:RDDT)

Number of Hedge Fund Holders: 39

Reddit Inc (NYSE:RDDT) is an American social news aggregation, content rating, and forum social network. The company has embraced artificial intelligence by licensing its data to train AI models, securing data licensing agreements totaling over $200 million over the coming years.

On October 30, Bernstein raised the firm’s price target on Reddit (RDDT) to $85 from $65 and kept an “Underperform” rating on the shares. The firm’s bearish outlook comes from Reddit’s expensive valuation. However, the analyst also points out the company has the potential to be an artificial intelligence beneficiary. The analyst describes Reddit as a real Dr. Jekyll and Mr. Hyde story.

“The clouds around Reddit have quickly defogged into a real Dr. Jekyll and Mr. Hyde story. Pre-IPO Reddit felt stuck unable to grow users or monetize the platform or viewed as real business — this is Mr. Hyde. But post-IPO Reddit looks like a company that’s suddenly an AI winner, growing ad revenues at an unprecedented clip, has a user growth cheat-code in translation + Google, and hitting years-long profitability targets in months — this is Dr. Jekyll. And right now, Dr. Jekyll is in charge”.

– Analyst Mark Shmulik

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