The S&P 500 Information Technology Sector index was down 0.3% at 11:45 a.m. ET Friday, while the broader S&P 500 and the tech-heavy Nasdaq were flat.
Reddit (RDDT) shares soared as the social networking site struck a deal with artificial intelligence (AI) platform provider OpenAI. Doximity (DOCS) shares surged after the network for medical professionals posted better-than-expected results and announced a stock buyback. Robinhood Markets (HOOD) shares took off on a double upgrade from Bank of America.
Reddit, OpenAI Form Partnership to Bring Reddit Content to ChatGPT
Reddit shares were up 13% following the announcement that the company and AI giant OpenAI struck an agreement to bring Reddit’s content to OpenAI’s chatbot ChatGPT and new products. The arrangement also allows Reddit to incorporate new AI-powered features. In addition, OpenAI will become an advertising partner with Reddit.
Doximity Reports Better-Than-Expected Results, Announces $500M Buyback
Doximity shares jumped 17% as the medical professionals networking service reported adjusted earnings per share (EPS) of $0.25, with revenue up 6% year-over-year to $118.1 million. Both exceeded estimates. Doximity also said its board approved a $500 million share repurchase program with no expiration date.
Robinhood Markets Gets BofA Double Upgrade and Price-Target Hike
Robinhood Markets shares climbed 12% after Bank of America double upgraded the stock to “buy” from “underperform.” In addition, the analysts increased the price target to $24 from $14. BofA noted it now views the online brokerage opposite of how it felt at its 2021 initial public offering (IPO) because of rising retail engagement and accelerating organic growth, positive operating leverage after cost cuts, and attractive valuation.