After an explosive initial public offering (IPO) last week, Reddit (NYSE: RDDT) stock closed out this week's trading with more gains. The social media company's share price ended the shortened trading week up 7.2% from last Friday's market close, according to data from S&P Global Market Intelligence. Meanwhile, the S&P 500 index moved 0.4% higher across the stretch.

In addition to positive momentum for the broader market, Reddit gained ground thanks to expectations that the business could have underappreciated opportunities in the artificial intelligence (AI) space. The company has started to license its data for the training of large language models (LLMs), and the move could significantly improve the economics of the business.

Before its public debut, Reddit filed an S-1 filing with the Securities and Exchange Commission that laid out key information about the business's performance, risks, and growth opportunities. In the filing, the company noted that it was looking to make a data-licensing a substantial new sales pillar.

Continue reading

Source Fool.com