Loop Capital analyst Alan Gould raised the firm’s price target on Reddit to $75 from $60 and keeps a Buy rating on the shares. The firm is adjusting its model to reflect the OpenAI licensing deal, estimating the net value of the deal to be $40M-$50M per year as OpenAI will license Reddit’s data and become a Reddit advertising partner while Reddit will bring OpenAI features to Reddit, the analyst tells investors in a research note. The next potential growth area for the company – not built into the firm’s model – would be growing the user economy and helping enable users to earn money on the Reddit platform, Loop added.
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