Reddit (RDDT) Seen as a Key Strategic AI Asset as Demand for Training Data Grows

Reddit, Inc. (NYSE:RDDT) is one of the AI Stocks in Focus This Week. On December 1, Piper Sandler reiterated an “Overweight” rating on the stock with a price target of $290.00. The firm views Reddit as a strategic AI asset supported by licensing potential and ad revenue momentum.

Reddit has two primary Data Licensing (DL) agreements in place with Google and OpenAI. These DL agreements drive a significant portion of segment revenue, and are on track to reach an estimated $400million in revenue by 2027, surpassing both consensus & PSC expectations.

The firm likes the setup for Reddit heading into 2026, noting how the growing demand for training data in the AI landscape positions the company as a strategic asset.

The company’s advertising business, which the firm expects to grow an estimated 70% year-over-year in 2025 and mid-40% in 2026, also possesses “differentiated growth” compared to peers.

“Reiterate OW. We like the set-up for RDDT stock into ’26. The growth in AI continues to fuel the need for training surfaces, and we see RDDT as a strategic asset in this context. Similarly, we see RDDT’s ads businesses possessing differentiated growth (we project ~70% y/y growth for ads in ’25, mid-40% percent growth in ’26). Last, RDDT is coming out of difficult y/y user growth compares, and we expect stabilization in 4Q with potential upside to our 2026 forecasts.”

Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.

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Disclosure: None.