{"id":741993,"date":"2026-07-31T10:25:17","date_gmt":"2026-07-31T07:25:17","guid":{"rendered":"https:\/\/buradabiliyorum.com\/en\/reddit-reports-a-solid-quarter-but-shows-signs-of-ais-impact\/"},"modified":"2026-07-31T10:25:17","modified_gmt":"2026-07-31T07:25:17","slug":"reddit-reports-a-solid-quarter-but-shows-signs-of-ais-impact","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/reddit-reports-a-solid-quarter-but-shows-signs-of-ais-impact\/","title":{"rendered":"Reddit reports a solid quarter but shows signs of AI’s impact"},"content":{"rendered":"
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Reddit<\/a> reported a strong second quarter<\/a> but spooked investors by mentioning in an investor letter<\/a> that traffic from search engines had grown \u201cchoppy.\u201d<\/p>\n

The company\u2019s total revenue of $805 million jumped 61% compared to the year-ago quarter while net income was $253 million, up 183%. These beat Wall Street\u2019s expectations. Plus, the company said it expects to hit revenue of $860 million to $870 million with healthy earnings before taxes next quarter as well, which beat expected guidance.<\/p>\n

Normally, telling investors that they can expect even better results to come would cause a stock to rise. But the stock slid over 10% in after-hours trading.<\/p>\n

The culprit was likely CEO Steve Huffman\u2019s warning in that separate letter to shareholders. \u201cSearch referrals were choppy in the quarter, and traffic was more volatile later in the quarter, but the bigger picture is unchanged: the commercial business is strong,\u201d he wrote.<\/p>\n

AI is clearly changing the search engine landscape \u2014 and investors seem to fear that Reddit\u2019s traffic may suffer.<\/p>\n

In 2024, Reddit signed a contract<\/a> to provide its content to Google for the purposes of AI training. However, Google\u2019s deployment of AI summaries app<\/a>ears to be peeling away audience share from Reddit, and the site has signaled<\/a> it\u2019s not sure whether it will renew the partnership with the search giant.<\/p>\n

Another sticking point has been whether Reddit\u2019s audience is growing in the right places or not. Reddit\u2019s global users are up, but the platform saw U.S. users, in terms of daily active uniques, endure a very slight decline \u2014 53.2 million from 53.5 million in Q1.<\/p>\n

During Thursday\u2019s earnings call, some analysts aggressively questioned AI\u2019s impact on Reddit\u2019s audience.<\/p>\n

\u201cI don\u2019t want to belabor this point, but your stock is down sharply because there is just a sense from investors that you have a \u2014 I don\u2019t want to, to be blunt \u2014\u00a0a user problem, especially in the U.S.,\u201d one Wall Street analyst said.<\/p>\n

\u201cPeople are looking at the daily and saying, you know, the logged-out traffic is going to be under pressure because as search shifts to AI, you\u2019re not going to get referrals, and that it\u2019s going to be harder to get people to go from logged-out to logged-in, and that\u2019s sort of symptomatic of what you\u2019re seeing,\u201d the analyst continued, asking, \u201cDo you see any world where you\u2019re not licensing data to Google and OpenAI next year?\u201d<\/p>\n

Huffman said that he felt that the human aspect of Reddit would continue to make it a destination for users. \u201cReddit is communities and conversation. Communities are universal, and so we think we have in the U.S. content for everyone, and it\u2019s a matter of revealing that. And we\u2019re making progress towards that end,\u201d Huffman said.<\/p>\n

When it comes to Google, Huffman was vaguer. \u201cOur relationship with them actually predates the formal kind of data licensing agreements,\u201d he said. \u201cI don\u2019t think there\u2019s a binary outcome\u00a0\u2026 we will make sure that we\u2019re maximizing the value for Reddit.\u201d<\/p>\n<\/div>\n

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If you want to read more like this article, you can visit our Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Reddit reported a strong second quarter but spooked investors by mentioning in an investor letter that traffic from search engines had grown \u201cchoppy.\u201d The company\u2019s total revenue of $805 million jumped 61% compared to the year-ago quarter while net income was $253 million, up 183%. These beat Wall Street\u2019s expectations. Plus, the company said it…<\/p>\n","protected":false},"author":1,"featured_media":741994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2024\/05\/reddit-ipo-v2.webp?resize=1200,674","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[77337,26293,5005,31059],"class_list":["post-741993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-ai","tag-google","tag-reddit","tag-social"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/741993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=741993"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/741993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/741994"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=741993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=741993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=741993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}