Needham says findings from several recent whitepapers indicate Reddit (RDDT) is a key beneficiary of the shift to large language models and artificial intelligence driven answers. The company is “disproportionately cited” inside AI-answers, and citations are the new value driver for consumer discovery and navigation of the open internet, the analyst tells investors in a research note. As AI-answers replace links, economic benefits shift to the citations that AI-answer give, and 20%-40% of citations are to Reddit, according to recent studies, Needham contends. It keeps a Buy rating on Reddit shares with a $300 price target
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on RDDT:
- OpenAI working on functionality of advertising inside ChatGPT, Information says
- AI Daily: ByteDance plans to spend $23B on AI in 2026
- Reddit named ‘Top Pick’, added to ‘Conviction Buy’ list at Needham
- Reddit: High-Conviction Buy on Unique Human-Generated Content, AI Monetization, and Market-Leading Growth Through 2026
- ByteDance plans to spend $23B on AI in 2026, FT reports