Reddit’s data licensing strategy is driving growth, with other revenues up 24% in the second quarter to $34.8 million. The global AI datasets market is projected to reach $1.59 billion by 2030, creating opportunities for Reddit’s conversational datasets. Features like Reddit Answers and machine translation are enhancing engagement, with DAUq and WAUq growing 21% and 22% year over year, respectively.

Despite competition from Meta Platforms and Alphabet, Reddit’s unique archive of authentic conversations sets it apart in the data licensing space. Reddit shares have jumped 33.8% year to date, trading at a premium with a forward 12-month Price/Sales of 16.51X. The Zacks Consensus Estimate for third-quarter earnings is 49 cents per share, up 17 cents from the previous month.

With a Zacks Rank #1 (Strong Buy), Reddit continues to show promise in the market. The company’s strong performance and valuation metrics position it for potential growth. Access Zacks’ private portfolio services for just $1 to maximize your market gains and receive real-time stock recommendations tailored to your investing style.

Read more at Nasdaq: Can Reddit’s Data Licensing Momentum Drive More Upside in the Stock?