Despite Reddit delivering an objectively solid Q2, its stock cratered, in part because of search-related headwinds and low referral traffic.
Reddit Q2 revenue +61% YoY (ad revenue $762M +64%), stock -13% as Google AI Overviews divert search referrals. $60M/year Google data-licensing deal in renegotiation; Reddit assesses training-data value vs. grounding needs. Signal: consolidated players vulnerable to AI search intermediation.
Thursday, July 30th, 2026 – 7:01 pm
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Guess there’s no pleasing investors.
Despite Reddit delivering an objectively solid Q2, with overall revenue up 61% year-over-year to $805 million and advertising revenue up 64% YoY to $762 million, the company’s stock cratered on Thursday, sliding nearly 13% in after-hours trading.
Why? Because AI.
Reddit reports a solid quarter but shows signs of AI's impact | TechCrunch
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Reddit CEO Steve Huffman critiques Google's AI Overviews feature, raising questions about crypto content visibility
