NEW YORK, July 26, 2026, 09:06 EDT — Reddit stock dropped after traffic from Google fell, raising investor attention on the final tally of logged-out visits.
- The stock ended Friday at $168.73, marking a 7.1% decline over five sessions.
- The segmentation between logged-in and logged-out users will conclude with Q2.
- Initial estimates show the July 22 decline wiped out nearly $3.0 billion, which is approximately 50 times Google’s annual fee at present.
Reddit’s dispute with Google was about more than just licensing revenue. Investor response indicates concern over possible declines in traffic from Google Search.
U.S. cash markets were shut on Sunday. Reddit ended Friday trading at $168.73, falling 7.11% across five sessions. The stock is down 26.6% for the year.
The Wall Street Journal reported that Reddit considered limiting Google’s access to its content for AI purposes. Google, a unit of Alphabet NASDAQ:GOOGL, is in talks with Reddit as their 2024 agreement approaches its end. The deal is valued at roughly $60 million per year for Reddit.
The quarterly figure comes to $15 million, which amounts to 2.1% of Reddit’s projected $720 million second-quarter revenue at the midpoint. The sum appears minor compared to the response.
On July 22, the stock declined 8.32%, falling from $185.84 to $170.38. Based on a preliminary estimate that uses Friday’s market capitalization as a share-count stand-in, the decrease amounts to about $3.0 billion. That figure is nearly 50 times larger than the present yearly fee.
Reddit’s audience composition explains the trend. In the first quarter, logged-out daily active uniques, also known as DAUq, totaled 74.8 million. This group made up 59% of Reddit’s total 126.8 million daily active uniques.
Reddit states that most visitors from search engines are not logged into the platform. The company also notes that users who are logged out tend to interact less and bring in less revenue per user. The filing does not attribute all logged-out traffic to Google.
The gap increased in Q1. Logged-out DAUq increased 26% year-on-year, while logged-in DAUq was up 7%. Reddit attributed part of its overall user gains to search algorithms.
The July 30 report could offer the last unaffected reading. Starting in Q3, Reddit will no longer reveal logged-in and logged-out DAUq. That change puts increased focus on a secondary metric this week.
Analysts are divided on what to expect next. Brad Erickson at RBC Capital Markets described the development as a “significant step backwards.” D.A. Davidson’s Wyatt Swanson stated both parties continue to gain from keeping referrals in place. TipRanks
Reddit’s valuation leaves limited protection in the event of a traffic shortfall.
| Company | Friday close | Five-day move | 2026 move | Trailing P/E |
|---|---|---|---|---|
| Reddit NYSE:RDDT | $168.73 | -7.11% | -26.60% | 47.8x |
| Pinterest NYSE:PINS | $22.13 | -2.98% | -14.52% | 45.9x |
| Snap NYSE:SNAP | $4.35 | -4.61% | -46.10% | n.m. |
| Meta Platforms NASDAQ:META | $595.19 | -7.84% | -9.83% | 21.6x |
Data on prices and returns is current as of July 24. Trailing P/E ratios are shown.
Last week, Reddit lagged behind Pinterest and Snap, with Meta experiencing a somewhat steeper decline. Reddit’s trailing multiple stays higher than Meta’s and close to Pinterest’s.
The next key event comes Thursday following the market close, when Reddit posts results at 4:30 p.m. ET. The company previously forecast revenue of $715 million to $725 million, with adjusted EBITDA seen between $285 million and $295 million.
The company’s operating baseline remains robust. Revenue for Q1 surged 69% to $663 million. Advertising revenue jumped 74% to reach $625 million, and other revenue increased 15%.
Chief Executive Steve Huffman stated that Reddit holds a “unique advantage in the age of AI.” Investors are set to evaluate this assertion as they look at logged-out user metrics and potential remarks from Google. Reddit Investor Relations
Risks: If the renewal fails, it may cut off licensing revenue and decrease referral traffic. A more substantial deal could help the shares. Shifts in ad demand, changes to algorithms, and Reddit’s valuation could intensify any resulting movements.
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