What meme trade mania's return means for Reddit

As the meme trade frenzy returns, Bank of America Securities senior internet technology analyst Justin Post joins Catalysts to discuss the potential impact on Reddit (RDDT). Post characterizes Reddit as an "AI beneficiary" but explains that it is still hard to say whether the company will be considered a meme stock in the future.

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This article was written by Gabriel Roy

Video transcript

You cover Reddit, we've seen the meme frenzy obviously back.

I'm curious, what kind of run do you think that has for this stock?

And do you think it's going to drive Reddit moving forward or is it gonna be more about the business fundamentals for Reddit?

Well, they certainly are an A I beneficiary.

Uh They've signed some interesting deals with learning language model companies to help them improve, improve their results and performance.

So they have that as a, as a positive backdrop as far as the meme stocks, uh hard to say if they're going to be considered a meme stock down the road, uh We're not valuing it that way at this point.

Uh We have a, we have a neutral on the stock.

We think it's pretty, fairly valued here.

Um And what's also really helping them recently is the Google algorithms have changed and you're seeing better traffic flows out of Google.

So that's, that's an important part of the story right now as well.