Why Reddit, Inc. (RDDT) Skyrocketed Today

We recently published a list of These 10 Stocks Are On Fire Right Now. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other Wednesday’s best-performing stocks.

Reddit grew its share prices by 6.68 percent on Wednesday to end at $118.21 apiece following news that it sued an Artificial Intelligence company for scraping its data without its permission.

In a copy of the lawsuit posted on its website, Reddit, Inc. (NYSE:RDDT) claimed that AI firm Anthropic was training its Claude chatbot on its data since December 2021.

Why Reddit, Inc. (RDDT) Skyrocketed Today

A close up of two hands creating a social media post on Bumble Inc. app.

According to Reddit, Inc. (NYSE:RDDT), filing a lawsuit was its final option to force Anthropic to stop its alleged unlawful practices.

“We will not tolerate profit-seeking entities like Anthropic commercially exploiting Reddit content for billions of dollars without any return for redditors or respect for their privacy,” the company said in a statement.

“A.I. companies should not be allowed to scrape information and content from people without clear limitations on how they can use that data.”

Anthropic has yet to issue a statement on the allegations.

Overall, RDDT ranks 9th on our list of Wednesday’s best-performing stocks. While we acknowledge the potential of RDDT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 10,000x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.