Wood isn’t buying Reddit at this price, but long term sees it an AI play

Ark Invest CEO Cathie Wood is holding off buying shares of the recent IPO Reddit at current prices, despite a long-term belief in the company’s artificial intelligence prospects. “We don’t think it’s a meme stock,” Wood told CNBC’s Andrew Ross Sorkin during a ” Squawk Box ” interview Wednesday. “It’s actually quite an interesting stock. We’re looking at it and ‘X’ as having some of the most valuable data out there to to exploit from an AI point of view,” she said, referring to the former Twitter. RDDT YTD mountain Reddit shares since going public To be sure, Wood bought Reddit on the offering but said she’s avoiding buying more after its runup. Shares last closed at $50.45, almost 50% above its initial offering price of $34 and 7% above its opening price on the New York Stock Exchange. Reddit went public last month in the first initial public offering of a major social media company since Pinterest ‘s debut in 2019. In the weeks since, Reddit’s experienced volatile price swings, rallying as much as 30%, and dropping nearly 15%, in two separate trading sessions. Reddit’s initial public offering came amid a slow revival in the IPO market following a two-year dry spell. Instacart , Klaviyo and Arm Holdings were among the first notable businesses to hit the market since the end of 2021.