Reddit (NYSE:RDDT) held its long-awaited initial public offering on Thursday, March 21, 2024. The stock opened at a price of $34 per share. Shares of Reddit soared over 50% in its first day of trading. The stock rose 8.88% on Tuesday, March 26.
The potential in the artificial intelligence space has excited investors in the first half of this decade. Fortune Business Insights recently estimated that the global AI market was worth US$428 billion in 2022. The same report projected that the AI market would grow to $2.05 trillion by 2030. That would represent an impressive CAGR of 21.6%.
Reddit data has the potential to deliver big value to investors in the age of generative AI and large language models (LLMs). ChatGPT, which was launched in November 2022 to the public, represented a watershed moment for this space. The sophisticated chatbot is powered by LLMs to provide the accurate and detailed output that has made it beloved by users. Reddit had trumpeted the importance of AI to its future ahead of its launch. It aims to use its massive content troves to feed AI and LLMs going forward.
This AI stock will be worth watching for investors who are hungry for exposure to this space in 2024 and beyond. Reddit will hope to emulate the success of Meta and avoid the pitfalls of publicly-listed social media stocks like Snap and Twitter.
