Group 1 - Reddit, Inc. is recognized as a strategic AI asset with significant potential in data licensing and advertising revenue, leading to an "Overweight" rating and a price target of $290.00 by Piper Sandler [1] - The company has established two primary Data Licensing agreements with Google and OpenAI, projected to generate approximately $400 million in revenue by 2027, exceeding both consensus and Piper Sandler's expectations [2] - Reddit's advertising business is expected to experience substantial growth, with an estimated 70% year-over-year increase in 2025 and mid-40% growth in 2026, indicating differentiated growth compared to peers [3][4] Group 2 - The growth in AI is driving the demand for training data, positioning Reddit as a strategic asset in this evolving landscape, with expectations of stabilization in user growth by Q4 [4] - The company leverages AI to enhance search functionality and improve user engagement on its social media platform [4]
Reddit (RDDT) Seen as a Key Strategic AI Asset as Demand for Training Data Grows