Reddit Inc (RDDT: NYE) stock price surged after announcing a strategic partnership with OpenAI, the artificial intelligence research lab backed by Microsoft. The deal allows OpenAI to leverage Reddit’s vast dataset for training its AI models, specifically including the popular ChatGPT chatbot.
Market Reaction to this Collaboration:
Investors responded positively to the news, with Reddit’s stock price jumping over 14% in pre-market trading. This follows a period of recovery for the stock, which initially soared after its IPO in March but faced selling pressure soon after. The OpenAI deal reinforces Reddit’s potential for growth in the AI-driven future.
Stock Target Advisor’s Analysis on Reddit:
Stock Target Advisor recommends a ‘Hold’ rating, and a target price of USD 52.53 for reddit stock. It projects a price change of -6.82% over the next 12 months, congruous to the average analyst target price of $52.26.
Among the 15 analysts covering Reddit, the consensus rating suggests a ‘Buy’ with the target price averaging at $52.26, with the highest and lowest predictions at $65 and $40 respectively.
Read More: How to Buy Open AI Stock?
Conclusion:
This strategic partnership between Reddit and OpenAI marks a pivotal point in Reddit’s existence as a major social media platform. This collaboration can possibly propel Reddit as a key player in the digital world fueled by AI. However, investors are encouraged to continually and diligently follow the market movements for more accurate decision-making.
