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CEO Steve Huffman confirmed that Reddit will begin testing a required login for users in the United States this quarter. This move is a direct response to Google's new AI search results, which provide answers directly on the search page and have led to a continued drop in visitors clicking through to Reddit's site.
By pushing more people to sign in, Reddit aims to turn casual browsers into logged-in users it can track and show better ads to. It also helps the company control how AI models use its data. While this may hurt total visitor numbers in the short term, it is a necessary shift to protect the value of its human-generated conversations, which Huffman argues are essential for training artificial intelligence.
Source: Yahoo Finance
Argus Research kept its buy rating this week, setting a target price of $150. This is significantly higher than the current price of about $99, though it sits below the average analyst target of $188. Since the firm did not change its overall rating, this is a routine confirmation of their existing view rather than a new shift in how Wall Street sees the company.
Source: Argus Research
Reddit is seeing a 13 percent drop in year-over-year traffic as Google integrates AI Overviews, which are summaries that answer a user's question directly on the search page. This confirms a growing concern that people who used to click on a Reddit link for advice are now getting what they need without ever visiting the site.
This is a real challenge because Reddit relies on these searchers to discover the platform and eventually sign up for accounts. While the company is trying to make more money from its existing logged-in users and AI data licensing deals, a shrinking pool of new visitors makes it harder to grow the total audience over the long term.
Source: Business Insider
Reddit is launching a feature called Reddit Reviews that uses AI to pull highlights and takeaways from user discussions about specific products. This organizes scattered comments into a single destination for people doing product research, making the site more useful for shoppers.
This is a smart move to protect the business as search engines like Google change. By turning its vast archive of human conversations into structured reviews, Reddit makes itself a destination people visit directly rather than just a site they find through a search engine. If it can keep more users logged in and searching on its own platform, it can show more targeted ads and rely less on outside traffic.
Source: TechCrunch
Reddit is starting to place ads directly in its search results. This allows brands to show products to users who are actively looking for specific advice or recommendations within a community.
This move comes just after the company warned that fewer people are finding Reddit through outside search engines like Google. By opening up more ad space inside its own search bar, Reddit is trying to make more money from the users it already has even if new visitor growth slows down.
Source: TechCrunch
Management consistently clears the bar they set, but the stock fell recently because their latest revenue forecast was not high enough to satisfy the market.
| Expectation | |
|---|---|
| EPS | $1.82 |
| Revenue | $1.02B |