AI Is Not the Killer App; It's the Killer Fuel for Reddit and Others

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Bloomberg Mar 26 23:41 · 12.1k Views

3iq's Head of Research Mark Connors thinks AI is the killer fuel for tech companies' future success and says it explains Reddit's surge post-IPO. He argues that Reddit remains untapped in terms of its potential AI gains. He speaks on "Bloomberg Markets."

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Transcript

  • 00:00 It feels like Reddit at this juncture is in advertising story.
  • 00:03 And when it comes to a lot of these social media stocks, these companies that rely on advertising dollars, I feel like that's kind of a big question mark Mark.
  • 00:13 Yeah,
  • 00:14 it is nascent.
  • 00:15 So that's why I say AI.
  • 00:17 Even the big folks, you know, even when you're looking at
  • 00:19 what what Google's trying to do
  • 00:21 or what,
  • 00:22 you know chat UPT has already done,
  • 00:25 all firms are still figuring out how to incorporate it.
  • 00:28 AI is not
  • 00:29 the
  • 00:30 the killer app, it is the killer fuel.
  • 00:32 It still has to be managed by firms in order to bring the yield.
  • 00:35 So back to Reddit.
  • 00:38 Reddit has a
  • 00:39 curated
  • 00:40 and stratified
  • 00:43 club or cadre of users
  • 00:46 and I think that's going to be very relevant to large language models because they can then toggle about the importance of each user based on the duration they've been on the platform and how long they spend each day.
  • 00:58 And Reddit captures that.
  • 01:00 So we're we're, we're not here to pound Reddit
  • 01:02 or pump it rather.
  • 01:03 But I I think what they're doing is still
  • 01:06 untapped, but they have the right model.
  • 01:09 And it's interesting.
  • 01:10 I mean looking through your notes, you're very clear that this IPO, it's not the market top.
  • 01:15 And I've definitely seen a few people on social media make that joke.
  • 01:20 Yeah.
  • 01:21 And we're going to find out though, in a couple hours when GameStop announces to see if, you know, the Wall Street bets, boys and girls are going to be
  • 01:28 out there pounding and pumping.
  • 01:30 Yeah, this is, you know, this is yesterday's news.
  • 01:33 As far as GameStop,
  • 01:37 we are still Fed related.
  • 01:39 I know we're going to talk about that.
  • 01:40 But you can't get over the fact that, you know, almost
  • 01:43 5-6 weeks ago, Jay Powell was on 60 minutes.
  • 01:46 We call it Boomer TikTok.
  • 01:48 And he was there
  • 01:50 pounding the table saying, hey, listen, I'm doing my job, but Treasury is deficit spending, making my job, managing
  • 01:57 unemployment,
  • 01:59 inflation
  • 02:00 and Treasury functioning
  • 02:03 very difficult.
  • 02:04 So I think that we're not out of the woods.