$RDDT looks redd-y.
Sorry that was bad. Little rusty on the oneliners.
Anyways. $RDDT got looped into the "ai doomer" story. But she has a very interesting catalyst.
Reddit already licenses data to ai labs like openAI + goolge (generates almost $150M from this).
AI companies need $RDDT for human conversation data.
Future customers could include anthropic, meta, and apple.
Reddit knows their value, so it's suing a few AI companies (including anthropic) for illegal scraping of data.
And there's a hidden catalyst.
$Reddit(RDDT)$ 's current AI licensing deals were signed in 2024.
- $Alphabet(GOOG)$ ~$60M/year
- OpenAI ~$70M/year
But AI demand for training data has *exploded* since then.
My theory is:
> current contracts (openai/google) reset higher
> new contracts will come from $Meta Platforms, Inc.(META)$ , anthropic, etc.
> lawsuits go in reddit's favor, forcing ai labs to license data instead of scraping it (big $$)
If any of these three hit...suddenly Reddit could have $500M+ ai data revenue, at almost pure margin.
Some insider buying activity recently too.
Chart looks good for a swing. Basing. Clear risk of a daily close under $140.
Slept on ai winner.
My first PT for $RDDT $180+.
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