Reddit Stock Climbs To Record High On Testing AI-Powered Answers: Retail Chatter Spikes

Initially available to a limited number of U.S. users in English, the company plans to expand the feature globally in the future.

Shares of Reddit, Inc. climbed more than 2% to a fresh record high Monday after the company announced testing of its AI-powered feature, Reddit Answers.

The feature, detailed in a blog post, introduces an AI-driven conversational interface allowing users to ask questions and receive curated summaries of Reddit’s community-driven discussions. 

Reddit Answers highlights relevant snippets, links to related communities, and posts, enabling users to dive deeper into topics. 

Initially available to a limited number of U.S. users in English, the company plans to expand the feature globally in the future.

Reddit stated the rollout aligns with its mission of “empowering communities and providing human perspectives.” 

The feature aims to enhance search experiences, making them “faster, smarter, and more relevant.”

Retail interest in Reddit stock soared, with message volume on Stocktwits hitting ‘high’ levels amid ‘neutral’ sentiment. 

The announcement comes a day after Morgan Stanley upgraded Reddit’s stock to ‘Overweight’ from ‘Equal Weight’, with a price target of $200, up from $70. 

The brokerage anticipates significant upside from Reddit’s engagement, user growth, and advertising pipelines, projecting ad pricing and ad load improvements. 

Morgan Stanley also presented a bullish case with a $300 price target, an 85% upside.

Since its March IPO, Reddit’s stock has more than tripled.

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