GOOGL - Google and Potential AWS Deals Showcase Reddit's Critical Role in AI and Brand Strategy: Analysts | Benzinga
Needham analyst Laura Martin initiated coverage on Reddit Inc (NYSE:RDDT) with a Buy rating and a price target of $55.
Reddit emphasizes the growing value of its extensive library of human conversations for training large language models (LLMs) and brand “social listening,” as per Martin.
The platform’s 18-year collection of daily updated conversations across 1.2 million topics and 7.5 million comments, according to the analyst, positions Reddit as a prime resource for understanding diverse human dialogues and popular expressions.
Read: Reddit Analyst Points To ‘Low-Hanging Fruit’ That Could Mean 20% Revenue Growth In ‘Next Few Years’
Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s $200 million deal with Reddit for data access underscores the potential for data licensing revenue, with OpenAI and several Amazon.Com Inc (NASDAQ:AMZN) Amazon Web Services LLMs expected to follow suit due to the indispensable nature of Reddit’s data for LLM development, Martin said.
She stated that Reddit’s unique data offers significant pricing power for GenAI applications by facilitating a nuanced understanding of language evolution and current terminologies.
Unlike alternative sources, ...