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Reddit Stock Rockets 42% As Company Posts First Profit Since IPO And Makes Its Case As An AI Winner
Reddit stock zoomed 42% after the social media firm posted a surprise profit, its first since going public last March.
Shares finished at $116.05 on trading volume more than eight times normal levels as investors registered the fact that the company is shaping up as an unexpected winner in the artificial intelligence arms race. That line in the income statement captures deals Reddit has made with the likes of Google and OpenAI to license its user content for companies training AI models. “Post- IPO Reddit looks like a company that’s suddenly an AI winner,” Bernstein analyst Mark Shmulik wrote, “growing ad revenues at an unprecedented clip, has a user growth cheat-code in translation + Google, and hitting years-long profitability targets in months.”
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