Reddit benefits from shift to AI-driven answers, says Needham

Core Insights - Needham's findings suggest that Reddit (RDDT) is significantly benefiting from the transition to large language models and AI-driven answers, being "disproportionately cited" in AI-generated content [1] - Citations are emerging as a new value driver for consumer discovery and navigation on the internet, with 20%-40% of AI-answer citations attributed to Reddit [1] - Needham maintains a Buy rating on Reddit shares, setting a price target of $300 [1]