By Alexander Osipovich
The chatter on Reddit forums could soon be used to power hedge funds' trading strategies, thanks to a partnership between the social-media company and the parent of the New York Stock Exchange.
Intercontinental Exchange, or ICE for short, and Reddit said they had reached an agreement in which the exchange group would develop data products based on content from Reddit forums. Such data could be used to identify real-time shifts in market sentiment and power trading algorithms, the companies said.
Reddit is set to report earnings for the fourth quarter of 2024 on Wednesday. The company, which went public last year, has been seeking to boost revenue from data-licensing agreements. ICE has a significant business selling financial data.
In 2021, Reddit users became an unlikely force in the stock market when its WallStreetBets forum became a hotbed of chatter about investing in GameStop, setting off an eye-popping rally in the stock, before the shares suddenly collapsed.
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(END) Dow Jones Newswires
February 11, 2025 17:15 ET (22:15 GMT)
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