We recently published a list of 10 AI News You Can’t Miss. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other AI news you can’t miss.
The AI stocks selloff that started following the launch of DeepSeek is still impacting the US markets. Aswath Damodaran, NYU Stern School of Business professor of finance, said in a recent program on CNBC that he believes innovation in AI technology like DeepSeek and new models would “commoditize” AI products and could result in lower spending.
“In my view, what it does is reduce the total size of the segment of the AI market that needs high-power chips and immense amounts of data. Whether deep seek is a fake or whether it’s going to pass by, what it opens people’s eyes to is that not all AI products and services need these incredibly powerful chips and huge amounts of data and huge data centers. You can get there with much cheaper devices. I think for many companies, when they look at the AI products and services they have to develop, they don’t need this high-powered stuff. They don’t need to spend the tens of billions of dollars up front. So, I think that’s the real worry you have to have.”
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For this article, we picked 10 stocks trending based on the latest news. For each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Reddit, Inc. (NYSE:RDDT)
Number Of Hedge Fund Investors: 87
Andy Swan from LikeFolio said in a latest program on Schwab Network that advertisers are “flocking to” Reddit, Inc. (NYSE:RDDT) amid the value they are getting on the social platform.
“I think advertisers are figuring out what a great value advertising on Reddit is and what great technology they have in place there. It delivers a higher ROI, I think, than some of the more traditional digital advertising platforms like Facebook, Google, etc. Those have kind of squeezed everything they can out of the ROI for advertisers, and Reddit is kind of the new frontier, if you could say it that way, and it’s growing really fast. If we look at Reddit web visits, they are up—digital traffic is up 21% year-over-year, and that’s off a really strong base and a strong uptrend. Things are a little seasonally flat right now, but you can see that uptrend really began over the last couple of years and seems to be continuing. More importantly, on the ad-related web visits—so this is potential advertisers or advertisers looking at Reddit’s advertising solutions—that’s up 90% year-over-year.”
Overall, RDDT ranks 5th on our list of AI news you can’t miss. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.