A company called Reddit, which lets people share funny things and talk about movies online, became more valuable recently because some people think it has something to do with artificial intelligence. AI is when machines can learn and understand stuff like humans do. Some investors want to buy stocks related to AI because they think those stocks will grow a lot in the future. But Reddit is not really an AI company, and some people are worried that this makes it too expensive and risky. Read from source...
1. Article title: "An Non-AI Stock Reddit Shows Expanding AI Exuberance, Important Treasury Auction Ahead, Fed MIA". The title suggests that the article is about a non-AI stock (Reddit) and its relation to the expanding AI exuberance. However, the rest of the article focuses mainly on Reddit as an AI company and its stock performance. This creates confusion and inconsistency in the main topic of the article.
2. The author's bias is evident when he states that "Reddit is a 19 year old company that is unprofitable and cash flow negative." This statement implies a negative judgment on Reddit as a business, without providing any context or analysis of its financial situation. Moreover, the author does not mention any positive aspects or potential growth opportunities for Reddit in the article.
3. The emotional appeal of the narrative that "investors need to find AI adjacent stocks" and that "the meme and momo crowds have chosen RDDT". This statement manipulates readers into believing that they should follow the trends set by these crowds, without considering the potential risks or lack of fundamental analysis behind their choices.
4. The irrational argument that Reddit data is valuable because it can be used to train large language models. While this may be true in some cases, the author does not provide any evidence or examples to support this claim. Additionally, he mentions a deal with Google that is "already under regulatory scrutiny", which raises questions about the legitimacy and sustainability of Reddit's business model in the AI sector.
Neutral with a slight leaning towards bearish.
Explanation: Although the article discusses the growing interest in AI stocks and Reddit as an AI-adjacent company, it also highlights some concerns about the company's unprofitability and cash flow negative position. Additionally, it questions the validity of the narrative surrounding Reddit's data value and its deal with Google, which is under regulatory scrutiny. These factors create a somewhat neutral sentiment with a slight leaning towards bearishness.