Why is the Reddit Inc stock price (RDDT) up 12% today?
Reddit Inc (RDDT), arguably the original meme stock, has done a roaring trade in the past few hours.
After debuting on the New York Stock Exchange stock exchange as recently as March 21st, the Reddit stock price has climbed an impressive amount in overnight trading.
After closing yesterday at a share price of $56.38, the stock shot up to $63.00 this morning after vigorous overnight trading, an increase of over $6.60, or 11.74%.
But why?
Reddit + ChatGPT
At roughly 4pm yesterday afternoon (Eastern Time), OpenAI announced in a post on Reddit, then on their own site, that the ChatGPT creator would be ‘partnering’ with Reddit.
This means that Reddit content will be coming to both ChatGPT and OpenAI’s other platforms, while OpenAI becomes a Reddit advertiser.
What it means
This has profound implications for both platforms. In the words of OpenAI’s post:
OpenAI will bring enhanced Reddit content to ChatGPT and new products, helping users discover and engage with Reddit communities. To do so, OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit. This will enable OpenAI’s AI tools to better understand and showcase Reddit content, especially on recent topics.”
Regardless of where this heads philosophically, the bulls are definitely in charge financially for now. At the time of the news breaking, the Reddit Inc. stock price skyrocketed from $56.30 to $64.78 in less than 20 minutes, between 4:29 and 4:47pm.
What the Redditors thinks
Reddit users themselves appear divided. “Incredible to watch these companies set themselves on fire in real time,” said Dr_Dick_Dastardly in response to the initial Reddit post. “Google with the AI Overviews and now ChatGPT wrapping its mouth around the Reddit firehose. These products can’t tell the difference between factual and fake data. Reddit is not an authority. It’s all anonymous opinions and you don’t have to be qualified to share them.”
Meanwhile, gucciman666 argued in the same thread that:
The value in Reddit isn’t authoritative or scientific info. It’s real user opinions. From normal people. When people ask ChatGPT for the best restaurants, the latest gear of a niche, top travel locations, car reviews, the answers will come from Reddit.”
The post Why is the Reddit Inc stock price (RDDT) up 12% today? appeared first on Invezz
