""If ChatGPT is somehow less reliant on Reddit, this refutes the idea that data licensing agreements will be re-upped for a higher rate," Champion wrote. "We understand why the stock is off. That said, we don't think anything has changed: Reddit content remains a potent asset for LLMs. Perhaps more importantly, the relationship (and traffic funnel) with Google seems intact. We expect a solid quarter and remain buyers of the stock.""
"He said concerns about Reddit's search-engine optimization are "simply noise." He said Reddit can continue driving stronger monetization of logged-in users rather than users that land on one of its forums from elsewhere. "We are more focused on the momentum in the advertising business near term rather than logged-out users," Boone wrote. "With advertising macro stable and significant momentum in Reddit's advertising business today, we expect earnings to materially outperform near term.""
Reddit stock rebounded nearly 5% Friday after earlier weekly losses that included a drop of more than 10% Wednesday and another 1% Thursday, leaving the stock down about 13% for the week. A third‑party report found ChatGPT cited Reddit posts less frequently, prompting investor concern about data licensing value. Piper Sandler reiterated an overweight rating with a $290 target, noting ChatGPT is not a major traffic source and that Reddit content remains valuable to LLMs while Google traffic appears intact. Citizen JMP highlighted advertising momentum and stronger monetization of logged‑in users, assigning a $300 target and an outperform rating.
Read at Investor's Business Daily
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