Reddit's stock price surged 5.01% during intraday trading on Thursday, marking a significant upward movement for the social media platform.

The rally appears to be driven by the company's announcement of a major content licensing agreement with Google to supply data for Gemini AI models. This deal represents a new phase in Reddit's efforts to monetize its vast archive of user-generated content, with the company also reportedly in talks with both Google and OpenAI about implementing AI-driven pricing for future data licensing agreements.

Adding to the positive sentiment, analysts have recently expressed bullish views on Reddit within the communication services sector, contributing to increased investor confidence in the stock's prospects as it develops new revenue streams through AI data partnerships.