We recently published a list of 12 AI News and Ratings Investors Are Watching Right Now. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other AI news and ratings investors are watching right now.
Redefining Innovation with Next-Generation AI
At CNBC’s ‘Money Movers’, Jack Hidary, CEO of Sandbox AQ, emphasized the shift towards B2B-focused AI, positioning it as the next major evolution in artificial intelligence. While language models like those from OpenAI have excelled in consumer applications, Hidary highlighted the untapped potential of quantitative AI (QAI) in driving innovation across industries like pharmaceuticals, automotive, and energy. QAI uses fundamental equations to generate new data, which enables advancements in drug development, materials for energy storage, and aerospace.
Hidary pointed out that large quantitative models are set to transform product development by creating significant economic value, unlike large language models, which primarily reduce operational costs. He predicts that 2025 and beyond will see a growing focus on AI’s role in addressing critical challenges in B2B sectors, from building better batteries to accelerating medical breakthroughs. This evolution underscores a future where AI goes beyond text-based applications, becoming a cornerstone for innovation across various industries.
READ ALSO: 10 AI News Dominating Wall Street Today and 11 Important AI News and Ratings for Investors.
The Role of Generative AI in Transforming Sales Strategies
As per a Mckinsey report, An unconstrained future: How generative AI could reshape B2B sales, GenAI is transforming B2B sales by improving efficiency, fostering growth, and reshaping sales operations. While the core role of sellers including building trust, creating value, and minimizing friction remains unchanged, generative AI enables productivity gains through automation, personalized insights, and strategic guidance.
Companies adopting these tools report improved customer experiences, faster sales processes, and new growth opportunities. Looking ahead, AI integration is expected to redefine sales models, emphasizing customer outcomes, long-term success, and collaboration between human and AI-driven agents. To adapt, businesses must embrace agile strategies, invest in AI-driven capabilities, and align their sales approaches with evolving customer expectations.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 52
Reddit, Inc. (NYSE:RDDT) uses AI to strengthen search functionality and improve user engagement by recommending relevant content and discussions. The company is also advancing its AI efforts with a new chatbot aimed at improving information retrieval and driving traffic back to its platform.
Citi analyst Ronald Josey raised Reddit’s price target to $200 from $120, maintaining a Buy rating. The increase reflects strong advertiser interest, rising engagement, and the success of new products like Reddit Answers. Citi highlighted Reddit’s expanding user base and product launches as key drivers of engagement growth. Advertiser discussions indicate increasing demand due to Reddit’s scale, with potential for more ad spending as tools like Search, Video, Dynamic Product Ads, and campaign automation gain traction. The analyst commented:
“On monetization, our conversations with advertisers suggest growing demand given Reddit’s user scale, and we believe there are multiple avenues for incremental ad spend as newer ad products like Search, Video, Dynamic Product Ads, and its planned end-to-end campaign automation tools launch and gain scale. Although our EBITDA projections go up materially, Reddit is investing across sales, search, AI/ML, and engineers. Reddit is one of our top SMID cap picks for 2025, and we reiterate our Buy rating.”
Overall, RDDT ranks 10th on our list of AI news and ratings investors are watching right now. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.