On July 22, Reddit fell 5.04% in pre-market trading, trading at $176.51/share, with turnover of $2.61 million.
On the news front, reports indicate that as AI search progressively erodes online media traffic, Reddit is reassessing its content licensing partnership with Google. Reddit previously signed a $60 million per year agreement with Google in 2024 allowing the tech giant to use Reddit content for AI model training. However, as users increasingly turn to AI-generated answers instead of browsing Reddit forums directly, the company is now evaluating whether renewing the contract remains beneficial.
The market had previously anticipated that upon renewal, the deal could be significantly upgraded to $300-500 million annually. The current news suggests this optimistic expectation now faces material uncertainty, creating clear short-term pressure on the stock. Reddit executives are reportedly questioning what value continuing to supply content to Google delivers as AI-generated answers reduce click-through rates to external websites. The existing agreement is approaching expiration, with renewal negotiations currently underway.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)