Reddit announced a new partnership with Microsoft-backed OpenAI late Thursday Reddit stock soared Friday, briefly flashing an aggressive entry.
The social media site will give OpenAI access to Reddit's Data API, letting the artificial intelligence startup learn from Reddit content in real time. Reddit's platform will get AI-powered features. OpenAI and Reddit will be advertising partners.
Reddit stock jumped 10% to 62.04 Friday, briefly hitting 66.15 intraday. Shares are working on an IPO base with a 74.90 buy point. But investors could use Tuesday's high of 64.50 as an early entry.
The "OpenAI partnership suggests widespread demand for Reddit data," Deutsche Bank analysts said Friday in a client note. They boosted their price target for Reddit stock from 62 to 65 with a buy rating.
RDDT stock was up 5.3% this week through Thursday, surging Monday-Tuesday as meme stocks took off again, then retreating Wednesday-Thursday as GameStop and other plays pulled back. Various subreddits have been a center for meme stock investing.
Reddit shares topped 66 at one point early Friday, but backed off as GameStop tumbled again.
Microsoft dipped 0.4% to 419.13 Shares edged down 0.5% on Thursday. MSFT stock has a 430.82 flat-base buy point, but a move above Thursday's high of 425.42 would offer an early entry.
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