Reddit Stock Spikes Thanks To Potential Meta, Google Chip Deal
Reddit, Inc (NYSE:RDDT) stock gained on Tuesday thanks to Meta Platforms Inc‘s (NASDAQ:META) potential leveraging of Alphabet Inc (NASDAQ:GOOGL) Google's artificial intelligence chips.Google is reportedly negotiating with Meta and other cloud customers to supply its tensor processing units (TPUs), aiming to challenge Nvidia Corp's (NASDAQ:NVDA) turf.Meta could begin renting TPUs from Google Cloud from 2026 and may invest billions in Google hardware starting in 2027 to cut AI training and inference costs.Also Read: Reddit Beats Q3 Earnings, Revenue Estimates: DetailsThe $37 billion Reddit stock gained over 28% year-to-date as it topped revenue and EPS estimates in the last four quarters, backed by advertising and user growth, along with strategic initiatives in artificial intelligence (AI) and international expansion. Alphabet and Meta continue to dominate U.S. social media use, leaving Reddit stuck in the middle of the pack, according to a new Pew Research poll.YouTube leads with 84% of Americans using it regularly, followed by Facebook (71%) and Instagram (50%).Reddit ranks sixth at 26%, trailing TikTok and WhatsApp but ahead of X, Threads and Truth Social.Reddit has grown from 18% usage in 2021 to 26% today, with younger users driving adoption — yet it remains far behind the industry's biggest platforms.However, Cathie Wood trimmed Ark Invest's Reddit stake, selling 39,854 shares worth about $7.5 million, even after the platform delivered strong third-quarter results with faster user growth, higher ad revenue and improved profitability.Wood appears to be taking profits as the stock runs up, reallocating capital toward higher-conviction crypto-linked bets.Price Action: RDDT stock is up 7.50% at $209.76 at last check Tuesday.Read Next:Image: Shutterstock
