Reddit falls on weak U.S. user growth

Reddit

31/07/2026 10:09

** Shares of social media platform Reddit RDDT.N fall 9% to $162.02 premarket
** Co said on Thursday that choppy search-engine traffic affected U.S. user growth in the second quarter, overshadowing an upbeat revenue forecast
** J.P. Morgan cuts PT to $185 from $200, maintains "neutral" stance, says despite strong results and guidance, Reddit said user trends were pressured by changes to Google's search ecosystem and content-ranking systems, both in the U.S. and international markets
**  "We believe the ongoing traffic volatility from Google's evolution toward AI Overviews will be a key focus area for RDDT during its ongoing data licensing renewal negotiations" says J.P. Morgan
** Thirty-three analysts rate stock "buy" on average; median PT is $240 - data compiled by LSEG
** As of last close, stock down ~23% YTD 

 (Reporting by Akriti Shah in Bengaluru)
 ((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))