"The social media advertising market is currently valued at about $234 billion, according to Statista, and growing. Reddit is benefiting from this tailwind, but what makes the stock a particularly compelling growth stock to buy is the company's data from user discussions, which is valuable for AI model makers. The stock is up more than 40% year to date, putting it on course to rise substantially over the next five years from continued growth of the platform."
"With more than 110 million daily active users, Reddit is generating enormous amounts of authentic, human-generated texts, which can be used for training large language models (LLMs) It signed a deal with Google in 2024 to provide data for training the search giant's AI models. Reddit's "other" revenue, including data licensing, has increased from $14 million in 2022 to $135 million on a trailing-12-month basis."
Artificial intelligence is creating investment opportunities through companies with valuable data assets and high revenue growth. Reddit has more than 110 million daily active users and supplies authentic human-generated text useful for training large language models, including a 2024 deal with Google to provide training data. Reddit's "other" revenue, including data licensing, rose from $14 million in 2022 to $135 million on a trailing-12-month basis. Advertising remains the primary revenue source, with ad revenue up 84% year over year in Q2 2025. Shares trade at a 25 P/S ratio and consensus revenue growth projects about 33% annually over five years, implying potential to double.
Read at The Motley Fool
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