Reddit (RDDT) experienced a significant surge in value on Thursday night due to a new partnership with OpenAI, a startup backed by Microsoft. This collaboration will enable OpenAI to access Reddit’s Data API, allowing the artificial intelligence company to learn from real-time content on the social media platform. As a result, Reddit’s platform will benefit from AI-powered features, and the two companies will become advertising partners.
Following the announcement of this partnership, Reddit’s stock rose by 11% after hours, reaching approximately 62.61. The shares are currently in the process of forming an IPO base with a buy point of 74.90. Investors may consider using Tuesday’s high of 64.50 as an early entry point. Throughout the week, RDDT stock had increased by 5.3% up to that point, with significant gains on Monday and Tuesday as meme stocks saw a resurgence, followed by a slight decline on Wednesday and Thursday as GameStop (GME) and other similar stocks retraced. Many subreddits have become popular destinations for meme stock investing.
Meanwhile, Microsoft (MSFT) saw a slight uptick in its stock price late on Thursday. The shares increased by 0.5% to 420.99. MSFT stock currently has a flat-base buy point of 430.82, with a potential early entry available if the price surpasses Thursday’s high of 425.42. Investors can stay updated on stock market developments by following Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson.
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As investors continue to navigate this rally in the market, it is crucial to stay informed about opportunities like Tesla’s buy signal from potential rivals like Rivian Automotive or Lucid Motors.
Overall, this new partnership between Reddit and OpenAI could lead to significant advancements in AI-powered features for the social media platform while also benefiting investors through increased revenue streams and advertising opportunities.
Investors should keep an eye out for developments related to these companies and continue researching various investment options before making any decisions in the rapidly changing stock market environment.
