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Reddit (RDDT) May Walk Away From Google’s (GOOGL) $60 Million-a-Year Deal as AI Search Eats Its Traffic
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Reddit, Inc. (NYSE:RDDT) fell 8.7% after the report, its worst session since March, according to Barron’s.
Reddit is useful because its users argue about whether a product is actually good, describe unusual problems and update old advice.
Reddit can reasonably demand more money or limits on how that material appears in Google’s AI products.
Alphabet Inc. (NASDAQ:GOOGL), through Google Search, also sends people to Reddit, where their visits can be turned into advertising revenue.
At the July 15 settlement, 16.99 million Reddit shares were sold short, equal to 12.34% of float and almost unchanged from the previous report.