Reddit, Inc. operates a digital community platform in the United States and internationally. The platform lets users hold conversations, explore interests, research hobbies, exchange goods and services, create new communities and experiences, share humor, and find belonging. It also organizes communities around specific interests, where users can share experiences, submit links, upload images and videos, and reply to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.
Reddit's ad growth and AI data appeal shine, but UAE youth ban adds regulatory risk
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Reddit's Q1 revenue beat stands out as shares gain 15.1% Reddit reported Q1 revenue of $663.4 million, up 69.1% year over year and beating estimates by 8.8%. While other social media stocks fell after earnings, Reddit shares rose 15.1%, showing investors see Reddit's growth as exceptional and likely pushing the stock higher.
This is a major new earnings result that directly boosts investor confidence and the stock price.
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UAE bans social media for children under 15 The UAE will prohibit under-15s from having social media accounts and require age verification and parental controls for teens. Reddit must comply within 12 months, raising costs and potentially limiting user growth and ad targeting in the region, which could weigh on the stock.
This new regulation directly affects Reddit's operations and future growth in a key market.
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Analyst says Reddit is undervalued despite AI fears An analyst argues Reddit is undervalued, with a fair value of $213 per share implying 22% upside. The stock is down over 25% in six months on AI disruption worries, but strong revenue growth, high margins, and a debt-free balance sheet support the bullish case, which could attract buyers.
This new analyst view provides a valuation anchor and counters negative sentiment, potentially lifting the stock.
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Reddit shares rise 7.9% on stronger ad demand and AI gains Reddit shares climbed 7.9% after the company reported stronger advertising demand, expanded its Shopify integration globally, and improved AI search citation performance. Analysts raised ad spend estimates, and the growing role in AI data licensing complements its core ad business, driving revenue growth expectations.
This new development shows concrete business momentum that directly boosts revenue prospects and the stock price.
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Reddit's AI ad growth, user rebound, and legal win offset EU child ban risk
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AI ad tools drive revenue growth Reddit's AI-powered ad suite, Reddit Max, saw adoption jump over 60% from the prior quarter, with campaign revenue up more than 150%. This helped Q2 revenue grow 61% to $805 million and ad revenue rise 64%. The tools make ads more effective, attracting more advertisers and boosting sales.
Shows a key growth driver that directly lifts revenue and investor confidence.
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August user growth accelerates Piper Sandler reported Reddit's average users grew 8% month-over-month in August, the strongest this year, with total audience up 18% year-over-year. International users surged 29.3%. More users mean more ad inventory and engagement, which supports future revenue and the stock price.
User growth is a core driver of ad revenue and was a major reason the stock jumped 7% on the news.
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Court ruling strengthens data licensing A judge ruled that Anthropic is bound by Reddit's User Agreement, giving Reddit more control over how its content is used for AI training. This supports Reddit's ability to negotiate data licensing deals, a growing revenue source. It also sets a legal precedent that could boost future licensing income.
This legal win directly supports a new revenue stream and strengthens Reddit's bargaining power with AI companies.
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EU proposes social media ban for under-13s The EU plans to ban social media for children under 13 and require parental consent for 13-14 year olds, with fines up to 6% of global sales. Reddit could lose younger users and face compliance costs, potentially slowing user growth and hurting ad revenue in Europe.
This is a new regulatory threat that could limit Reddit's user base and add costs, weighing on future profits.
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Reddit Q3: AI ad gains, S&P 500 entry, but no new AI deals and EU rules hit
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Q2 revenue and AI ad adoption surge Reddit's Q2 revenue jumped 61% to $805 million, and its AI ad suite Reddit Max saw adoption rise over 60%, boosting engagement and conversions. This strong financial performance and product traction likely drove investor optimism.
It shows the core business momentum that supported the stock during the quarter.
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S&P 500 inclusion lifts shares 12% Reddit joined the S&P 500 index, which typically forces index funds to buy the stock, pushing shares up 12%. This event increased demand and visibility, contributing to the quarter's gains.
It's a major new event that directly boosted the stock price.
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No new AI deals triggers 22% plunge The absence of new AI data-licensing deals caused a 22% stock plunge, as investors worried about future growth. This was a key negative force, highlighting reliance on AI partnerships.
It explains a major price drop and investor concern during the quarter.
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EU regulations add costs and user risk The EU designated Reddit a Very Large Online Platform, adding compliance costs, and proposed banning social media for under-13s, risking younger users and European ad revenue. These regulatory pressures weighed on the stock.
It represents a new regulatory headwind that could limit growth and increase expenses.
News & notes movingRDDT
United States
Artificial Intelligence▲
Emplifi and Semrush Report Finds 66% of Consumers Have Used AI to Research Products
A new joint report from Emplifi and Semrush, an Adobe company, finds that 66% of consumers have used AI tools to research products or discover gift ideas, with 11% now beginning their product research directly with an AI tool. The Social Search and AI Visibility Report, which combines Emplifi's consumer research with Semrush's search, traffic and AI visibility data, also found that 85% of consumers trust product recommendations shared by other Reddit users, and that more than one in four consumers, 26%, intentionally add "Reddit" to product searches to find authentic customer opinions. Among consumers who have made a social commerce purchase, 47% have done so through Instagram, followed by Reddit at 18% and Pinterest at 17%. On the search side, Semrush found that combined estimated US monthly visits to five leading LLM platforms rose from approximately 2.3 million in June 2023 to 1.33 billion in June 2026, an increase of nearly 580 times, while AI referrals to 30 major US retailers increased 190 times over the same period and now equal an estimated 8% of those retailers' social referral traffic, up from just 0.04% three years ago. The report concludes that brands should stop treating SEO, social media and AI as separate disciplines and instead build integrated discovery strategies.
Artificial Intelligence › AI Applications & Copilots ▲Demand
RDDT · Demand · Positive Report finds 85% trust Reddit product recommendations, 26% add 'Reddit' to searches, and 18% of social commerce purchases occur there.
Emplifi · Demand · Positive Emplifi co-produced the report whose findings on AI-driven product discovery support demand for its social marketing platform.
PINS · Demand · Positive Report shows Pinterest capturing 17% of social commerce purchases, evidence of consumer adoption of its shopping platform.
Meta AI Push Lifts Q2 2026 Ad Revenue 27% to $59.4 Billion
Meta Platforms said its artificial intelligence investments drove a 27% year-over-year increase in Family of Apps ad revenue to $59.4 billion in the second quarter of 2026, with ad impressions up 14% and average price per ad up 12%. The company said deployment of Meta Generative Recommender and other advanced models produced an 8.3% increase in ad clicks and a 15.7% uplift in conversions on Facebook, while Instagram time spent grew double digits and Facebook video time spent rose 9% globally. More than 9 million small businesses now use at least one of Meta's AI-powered ad creative tools, and its Advantage+ advertising solutions surpassed a $75 billion annual revenue run rate in the quarter. Meta guided third-quarter 2026 revenue to between $61 billion and $64 billion. Competitors are pushing into the same space: Reddit said advertiser usage of its AI-driven Reddit Max suite grew more than 60% in the second quarter of 2026 from the first quarter, with Max campaign revenue up more than 150%, while Snap reported 971 million monthly active users and 493 million daily active users for Snapchat in the quarter. Meta shares have rallied 13.8% year to date, trailing the broader Zacks Computer & Technology sector's 22.5% return, and the Zacks Consensus Estimate for 2026 earnings stands at $31.38 per share, down 1.07% over the past 30 days but implying 33.59% year-over-year growth.
Reddit International Revenue Surges 84% as Q3 Guidance Tops $860 Million
Reddit's international revenues surged 84% year over year to $166.8 million in the second quarter of 2026, outpacing 56% growth in U.S. revenues, as the company expands its global user and advertiser footprint against rivals Pinterest and Snap. International daily active uniques rose 28% to 77.1 million and international weekly active uniques jumped 35% to 317.4 million, while globally Reddit averaged 130.3 million daily active uniques, up 18%, and weekly active uniques increased 24% to 514.6 million. International average revenue per unique climbed 31% to $2.26 from $1.73, and global ARPU rose 36% to $6.18 from $4.53, supported by higher advertising pricing and impressions. Second-quarter advertising revenues jumped 64% year over year to $762 million, active advertisers increased more than 70%, and management said Rest of World revenues grew more than 80%. For the third quarter of 2026, management expects revenues between $860 million and $870 million, a midpoint implying about 48% year-over-year growth, while Reddit shares have plunged 33.6% year to date and carry a Zacks Rank #3 (Hold).
Reddit Wins Court Ruling Binding Anthropic to User Agreement
Reddit secured a key court ruling in its contract dispute with Anthropic over Reddit's User Agreement, with the judge finding Reddit supplied adequate evidence that Anthropic is bound by terms governing how Reddit data can be used. The decision strengthens Reddit's efforts to assert control over AI training on its platform content and pursue data licensing revenue, supporting its view that Anthropic is bound by its User Agreement and giving it a legal precedent when negotiating or policing similar deals. The outcome relates directly to how the US$29.0b interactive media business can control access to the user generated content that helps train and feed commercial AI products. The next figure to watch is Reddit's disclosed data licensing revenue in upcoming quarterly reports relative to the US$35m booked out of US$500m in Q2, especially once large agreements come up for renewal. Questions around renewals and long term usage terms still remain.
Artificial Intelligence › Open-Weight Model Developers Regulation
RDDT · Regulation · Positive Court ruling binds Anthropic to Reddit's User Agreement, strengthening Reddit's control over AI training on its content and its data licensing leverage.
Anthropic · Regulation · Negative Judge found Anthropic is bound by Reddit's User Agreement governing how Reddit data can be used for AI training.
Binance is conducting a major review of its assets, adding direct spot trading against the Thai baht for XRP, SOL, ETH and BNB while betting on stronger local fiat markets and integration with the traditional stock sector. The exchange framed the Thai baht pairs as the main fiat update of the week, part of a broader wave of new listings and delistings that also brings Reddit in and Quant out. The move extends direct local-currency access to four industry heavyweights, a step Binance ties to deepening its presence in regional fiat markets. No further figures or dates were disclosed.
EU to Propose Social Media Ban for Children Under 13
European Commission President Ursula von der Leyen said the EU will push for social media restrictions for children under 13 years, with a draft proposal set to be introduced on Thursday. The draft will impose strict age restrictions and verification requirements on social media, video-sharing platforms, app stores, online games, AI companions, and conversational AI chatbots, according to Bloomberg. "No social media under the age of 13. No personal account under the age of 15," von der Leyen said in her annual address on Wednesday, adding that the proposed law would allow 13- and 14-year-olds to have accounts with limited features and parental supervision. Companies that fail to meet the requirements could face fines of up to 6% of their annual sales. The bloc's upcoming rules follow Australia's ban last year on social media for children aged under 16, while individual EU member states have also been looking at setting their own restrictions.
Cybersecurity & Digital Trust › Workforce & Customer IAM (SSO/MFA) ▲Regulation
Cybersecurity & Digital Trust › Identity & Access Management ▲Regulation
META · Regulation · Negative Meta's social platforms face the EU's proposed under-13 ban, age-verification mandates, and fines up to 6% of annual sales.
SNAP · Regulation · Negative Snapchat would be subject to the EU's proposed under-13 ban, age-verification rules, and 6%-of-sales fines.
GOOG · Regulation · Negative EU draft would impose strict age-verification and under-13 bans on social/video platforms, exposing Alphabet's YouTube to fines up to 6% of sales.
RDDT · Regulation · Negative Reddit's social platform would fall under the EU's proposed age restrictions and verification requirements for minors.
Reddit Shares Rise 7% as Piper Sandler Reports August User Growth Accelerated
Reddit shares rose about 7% on Thursday, snapping a four-session losing streak, after Piper Sandler said the social-media platform's average users grew 8% month over month in August, the strongest monthly increase this year. Piper said the gain followed a 2% decline in July, with growth in Reddit's Feed audience more than offsetting a decline in Conversation users, and total audience growth accelerated to 18% year over year in August from 12.8% in July based on the brokerage's analysis of Reddit Ads Manager data. International users grew 29.3% in August, accelerating from 19% in July, while U.S. users increased 5.2%, and Piper noted weekly user momentum has been strong since early July, driven largely by the International Feed. Piper cautioned that changes to Reddit's Ads Manager forecasting model are expected to reduce September audience-size estimates by about 20%, a one-time reset reflecting methodology changes that does not indicate deterioration in underlying user trends and affects forecasting rather than auctions, optimization, or ad delivery. The brokerage also said August ad spending across its digital advertising dataset was 60 basis points above expectations, with the biggest beats from Netflix, Roku, YouTube, and Pinterest, while its estimate for third-quarter spending growth rose 30 basis points and Reddit's own third-quarter ad-spending growth estimate was raised 30 basis points.
RDDT · Demand · Positive Piper Sandler reported Reddit's average users grew 8% month over month in August, the strongest monthly increase this year, with total audience growth accelerating to 18% year over year.
Reddit Draws Heavy Investor Search as Zacks Sets Hold Rating
Reddit Inc. has landed on Zacks.com's list of the most searched stocks, with the Zacks Rank currently at #3 (Hold). For the current quarter, Reddit is expected to post earnings of $1.33 per share, a change of +66.3% from the year-ago quarter, while the Zacks Consensus Estimate has moved +0.8% over the last 30 days. The consensus earnings estimate of $5.27 for the current fiscal year indicates a year-over-year change of +101.2%, and the next fiscal year's consensus of $6.94 indicates a change of +31.6%. Consensus sales estimates stand at $886.87 million for the current quarter, $3.39 billion for the current fiscal year and $4.49 billion for the next fiscal year, indicating changes of +51.6%, +54.1% and +32.2%, respectively. In the last reported quarter, Reddit posted revenues of $804.91 million, up +61.1% year over year, and EPS of $1.25 versus $0.45 a year ago, beating the Zacks Consensus Estimate of $743.93 million by +8.2% on revenue with an EPS surprise of +26.26%.
Reddit's AI Push Drives Revenue Growth Amid Competition
Reddit is leveraging AI and machine learning across its platforms to boost engagement and monetization, with second-quarter 2026 revenues surging 61% year over year to $805 million and advertising revenues up 64% to $762 million. The company's AI-driven Reddit Max suite, now available to all advertisers, has seen adoption rise over 60% sequentially and campaign revenues increase over 150%, with features like tailored creatives delivering results such as Lenovo's 40% higher purchase value. Reddit faces stiff competition from Meta Platforms and Snap, both expanding their AI capabilities in digital advertising. Despite a 35% year-to-date share price decline, Reddit's forward Price/Sales of 6.93X exceeds the sector's 6.09X, and the consensus 2026 earnings estimate of $5.27 per share implies 101.15% growth. Reddit expects third-quarter 2026 revenues of $860-$870 million, indicating continued AI-driven growth.
EU Designates ChatGPT, Reddit, and Roblox as Very Large Online Services
The European Commission (EC) announced on Monday (August 31) that it has designated ChatGPT, Reddit, and Roblox as very large online services under the Digital Services Act (DSA), as each of the three services has at least 45 million average monthly users in the European Union (EU), meeting the minimum threshold. ChatGPT is classified as a Very Large Online Search Engine (VLOSE), while Reddit and Roblox are classified as Very Large Online Platforms (VLOPs). All three services have four months, until the end of December, to comply with additional obligations, such as assessing and mitigating systemic risks from illegal content, impacts on youth, physical and mental well-being, fundamental rights, electoral processes, and public security. This designation gives the EC the power to inspect the basic functioning of these services. With this announcement, the EC has designated a total of 28 services.
Reddit Shares Fall 3.4% After EU Designates It as Very Large Online Platform
Reddit shares fell 3.4% in afternoon trading after the European Union officially designated the company as a Very Large Online Platform under the Digital Services Act, a classification triggered by its user base exceeding 45 million monthly active users in the bloc. According to The Wall Street Journal, this designation requires Reddit to comply with stricter anti-harm standards and systemic risk assessments by the end of December 2026, or face penalties of up to 6% of its annual global revenue. The enhanced oversight grants the European Commission investigative powers to probe the platform's algorithms and content moderation practices. After the initial drop, shares recovered slightly to $148.08, down 3.2% from the previous close. Reddit is down 38.8% since the beginning of the year and trades 45.3% below its 52-week high of $270.71 from September 2025.
Meta Adopts Closed-Loop Cooling to Boost AI Data Centers
Meta Platforms is strengthening its AI infrastructure with closed-loop liquid cooling across most of its newest AI-optimized data centers, a system that circulates a water-and-glycol coolant through servers and heat exchangers for reuse, cutting ongoing water consumption and enabling higher GPU density. The company also uses reinforcement learning in a pilot that cut air-cooling fan energy by 20% and water use by 4%. These efficiency gains support Meta's broader AI expansion, which includes deploying AI across recommendations and advertising and developing personal and business agents. Meta spent $31.1 billion on capital expenditures in the second quarter of 2026, mainly for servers, data centers, and network infrastructure, and expects full-year 2026 capital expenditures of $130-$145 billion. Meta faces competition from Reddit, which unveiled AI-powered moderation tools in July 2026 that block 23 million spam views daily and cut harmful content exposure by over 40%, and Snap, which is leveraging AI through products like SPECS and Lens+. Meta's shares have lost 13.5% year-to-date, underperforming the Zacks Computer & Technology sector's 15.4% gain, and trade at a forward price-to-sales of 5.05X versus the industry's 3.97X. The Zacks Consensus Estimate for 2026 earnings is $31.90 per share, down 3.30% over the past 30 days, implying 35.80% year-over-year growth, and Meta carries a Zacks Rank #3 (Hold).
Meta Settles Teen Safety Suit for $17B; Snap Falls 9%
Meta Platforms agreed to a proposed multistate teen-safety settlement worth up to $17 billion, ending a federal trial that began days ago in Oakland, and its stock rose 1% to $575.60 at midday Wednesday. The settlement resolves allegations that Facebook and Instagram were designed to encourage compulsive use among children and teens, with payments running in annual installments over 10 years and California potentially receiving $1.5 billion to $2.1 billion. Participating states receive 70% of the allocated payment, while the remaining 30%, or $5.3 billion, is released only if YouTube and TikTok implement the same age assurance measures and match that amount. The $17 billion deal is a fraction of the $1.4 trillion in damages Meta said four states could seek, and Meta had booked a $2.4 billion charge related to legal proceedings in Q2 2026. Meanwhile, Snap stock fell 9% to $5.42 after Pennsylvania Attorney General Dave Sunday sued Snapchat over compulsive-use design and risks to minors, and Reddit slid 3% to $156.78 in sympathy, while the Global X Social Media ETF declined 0.7% to $45.28.
Shares of Reddit jumped 4.9% in afternoon trading after The Information reported that Meta Platforms is preparing to launch a consumer AI agent named Hatch that can access and browse Reddit. Hatch will also let users order from DoorDash, shop on Etsy, check Yelp, and manage Microsoft Outlook inside Meta's ecosystem. Meta plans to launch the tool in the coming weeks and has weighed tiered pricing that could include a premium subscription of up to $199.99 per month. The inclusion of Reddit alongside core utility apps highlights the platform's unique position in the broader AI landscape. Reddit's shares are extremely volatile and have had 54 moves greater than 5% over the last year.
Reddit Legal Chief's Share Disposition Tied to Tax Withholding
Reddit's chief legal officer Benjamin Seong Lee disposed of 3,887 shares on August 20 in a non-discretionary withholding to satisfy tax obligations tied to equity award vesting, according to an SEC filing. The transaction was valued at $590,000 based on a weighted average sale price of $151.71, leaving Lee with 71,536 directly held shares worth $10.75 million at the August 20 close. The filing notes the automatic disposition does not reflect a change in Lee's investment conviction. Reddit's legal battles over AI content use continue, with a Manhattan federal judge largely refusing to dismiss its DMCA claims against Perplexity and SerpApi on July 31, and a separate suit against Anthropic still pending.
Alphabet Leads Consumer Internet Q2 Earnings with 24.2% Revenue Growth
Alphabet reported second-quarter revenues of $119.8 billion, up 24.2% year over year, beating analysts' expectations by 2.2% and posting a solid EPS beat. Among the 44 consumer internet stocks tracked, the group's revenues beat consensus estimates by 1.3% while next quarter's revenue guidance came in 3% below. Reddit delivered the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth of the whole group, with revenues of $804.9 million, up 61.1% year over year, but its stock fell 13.8% since reporting. Coinbase was the weakest performer, with revenues of $1.22 billion, down 18.5% year over year and missing analysts' expectations by 5.9%, yet its stock rose 15.6% since the results. Bumble reported revenues of $210.5 million, down 15.2% year over year, in line with expectations but with a significant miss on next quarter's revenue guidance, while Snap's revenues of $1.60 billion, up 18.9% year over year, beat expectations by 3.8%.
Meta Platforms reported second-quarter 2026 advertising revenue of $59.4 billion, up 27% year over year, driven by AI-powered ad tools and strong user engagement across its family of apps. Ad impressions rose 14% and average price per ad increased 12%, while daily active users reached 3.6 billion. The company's Advantage+ AI advertising solutions surpassed a $75 billion annual revenue run rate, and more than 9 million small businesses now use at least one of Meta's AI-powered ad creative tools. Meta expects third-quarter 2026 revenue between $61 billion and $64 billion. Competitors Reddit and Snap also reported ad revenue growth in the same quarter, with Reddit up 64% to $762 million and Snap up 9% to $1.28 billion.
AvalonBay Communities Restructures, Exits S&P 500, Rebrands as Vivmark Residential
AvalonBay Communities completed a sweeping restructuring in August 2026 that saw its S&P 500 slot taken by Reddit, a rebrand into Vivmark Residential, a 2.793-for-1 stock split, and removal from multiple major equity indices. The company also transferred US$2.50 billion of revolving credit capacity and a US$550 million term loan to ERP Operating Partnership, part of a migration of US$3.05 billion of unsecured credit facilities. The changes include a new joint board and ESOP-related share registrations, materially altering how institutional investors may access and evaluate the business. Simply Wall St projects $3.4 billion revenue and $790.2 million earnings by 2029, requiring 3.9% yearly revenue growth and an earnings decrease of about $309.8 million from $1.1 billion today.
Reddit shares climbed 12.6% to $178.09 on August 14 after S&P Dow Jones Indices said the social-media company would join the S&P 500 before trading begins on August 18. J.P. Morgan estimates index-tracking funds will need about 16.7 million Reddit shares, nearly three times the stock's average daily volume of 5.98 million since its March 2024 IPO. Second-quarter revenue rose 61% to $805 million, beating the $730.4 million consensus, and the company guided third-quarter revenue to $860 million to $870 million, above the $829.1 million estimate. Stephens analyst Melissa Roberts noted new S&P 500 members historically lag the index by about 2% in the three months after inclusion, and Reddit still faces slowing U.S. user growth as search referrals become choppier.
Reddit Outpaces Meta in Digital Advertising Growth
Reddit's advertising revenue surged 64% year over year to $762 million in the second quarter of 2026, outpacing Meta Platforms' 27% growth to $59.4 billion. Reddit's AI-driven ad suite Max saw advertiser usage grow more than 60% from the first quarter and campaign revenues rise over 150%, while scaled channel revenues doubled and active advertisers grew more than 70%. Meta's AI investments boosted ad clicks by 8.3% and conversions by 15.7% on Facebook, and its Advantage+ solutions reached an annual revenue run rate of more than $75 billion. Reddit expects third-quarter revenues between $860 million and $870 million, representing 47% to 49% year-over-year growth, while Meta faces margin pressure from heavy AI infrastructure spending and losses at Reality Labs. Year to date, Reddit shares have fallen 28.4% and Meta shares 13.8%, with Reddit trading at a forward price-to-sales of 7.78 times versus Meta's 5.06 times.
Artificial Intelligence › AI Applications & Copilots ▲Demand
RDDT · Demand · Positive Reddit's advertising revenue surged 64% with strong growth in AI-driven ad suite Max, active advertisers, and scaled channels, and Q3 guidance indicates continued growth.
META · Capital · Negative Meta faces margin pressure from heavy AI infrastructure spending and losses at Reality Labs, with shares down 13.8% YTD.
Snap Drops 3% After Ninth Circuit Strips Its Section 230 Immunity
Snap shares fell 3% to $5.24 Monday midday after a federal appeals court ruling stripped the company's Section 230 immunity, opening the door to more than 3,000 consolidated lawsuits. The Ninth Circuit's August 10 decision rejected the legal shield that has historically protected social media platforms from liability over user-generated content, and the ruling sent Snap stock down as much as 12% overnight to $4.74 before buyers stepped in. The lawsuits, brought by states, municipalities, school districts and families, allege Snapchat was deliberately designed to maximize engagement among minors. The legal overhang overshadowed Snap's Q2 2026 revenue beat of $1.6 billion, up 18.9% year over year, and adjusted EBITDA of $249.62 million versus $41.27 million a year earlier. Peers also fell, with Meta Platforms down 3% to $573.9, Reddit down 3% to $173.45, and Pinterest down 4% to $23.2, while the Global X Social Media ETF slipped 1% to $46.11.
Uniphore Launches Marketing AI to Usher in New Era
Uniphore has launched Marketing AI, a new solution built on customer intelligence rather than customer data management, with the company saying it can predict what each customer is likely to do next. Co-founder and CEO Umesh Sachdev discussed the offering in a pre-market update from the New York Stock Exchange trading floor. The S&P 500 looks to build on a three-week win streak, with retail earnings and Wednesday's Fed Minutes headlining upcoming activity. Nearly 70% of traders expect the Fed to hold rates steady next month, while shares of Reddit jumped 12.6% on Friday following its inclusion in the S&P 500 ahead of Tuesday's session.
Reddit Data Licensing Revenue Grows 24% to $43 Million
Reddit's data licensing revenue grew 24% year over year to $43 million in the second quarter, with OpenAI and Alphabet's Google as its two biggest buyers. The licensing business sits inside other revenue and accounts for only 5% of Reddit's $805 million in total second-quarter revenue. Advertising remains the company's fastest-growing and biggest long-term opportunity, with ad revenue climbing 64% year over year to $762 million. Reddit's weekly active users rose 24% to 514 million, while daily active users increased 18% to 130 million. Management is focused on converting weekly users into daily users to drive more ad impressions, as data licensing remains a newer revenue stream with limited history.
Reddit is set to join the S&P 500 next week, prompting a double-digit stock gain as index funds adjust their portfolios. The company still derives more than 90% of its revenue from advertising, and executives are intensely debating how much its AI licensing deals might cannibalize that core business. Wall Street has cooled on the stock after the initial AI deal announcements, sending shares down double digits year to date despite continued ad revenue growth. Reddit's strategy of selling its user-generated content to train AI models while positioning itself as a refuge from synthetic content remains a central tension.
Reddit will join the S&P 500 index as of Tuesday, a move that sent its stock up nearly 14% around midday Friday. Inclusion in the benchmark index is seen as a mark of stability and typically boosts investment because trillions of dollars in mutual funds and exchange-traded funds track or mimic the S&P 500 and will need to buy the stock. The company qualified after trading publicly for at least 12 months and recently posted its highest-ever quarterly revenue, with profits in almost every quarter since its 2024 initial public offering. Wall Street expects profits to more than double overall in 2026 on a surge in revenue.
Reddit, Nu Holdings surge while Globant, Applied Materials slide
Stock futures were largely unchanged early Friday as investors weighed cooling inflation data and a fresh batch of tech earnings. Reddit shares jumped 12% after S&P Dow Jones Indices said the company will replace AvalonBay Communities in the S&P 500 before trading opens on August 18. Nu Holdings gained 9% after the Brazilian digital bank reported stronger-than-expected second-quarter results, with revenue up 56% year-over-year to $5.88 billion and GAAP EPS of $0.22. Globant plunged 13% after posting adjusted EPS below expectations and signaling continued pressure on revenue growth, while Applied Materials slipped 5% despite beating fiscal third-quarter estimates as investors sought a stronger upside surprise after the stock's nearly 98% year-to-date gain.
GLOB · Capital · Negative Globant plunged 13% after posting adjusted EPS below expectations and signaling continued pressure on revenue growth.
NU · Capital · Positive Nu Holdings reported stronger-than-expected Q2 results with revenue up 56% YoY and GAAP EPS of $0.22, driving a 9% gain.
RDDT · Capital · Positive Reddit will replace AvalonBay in the S&P 500, causing shares to jump 12%.
AMAT · Capital · Negative Applied Materials slipped 5% despite beating fiscal Q3 estimates as investors sought a stronger upside surprise after the stock's nearly 98% YTD gain.
Reddit shares jump on S&P 500 entry; SUI joins MidCap 400
Reddit will replace AvalonBay Communities in the S&P 500 effective prior to the opening of trading on Tuesday, August 18, sending Reddit shares up about 13% in post-market trading on Wednesday. S&P 500 constituent Equity Residential is acquiring AvalonBay Communities in a deal expected to be completed soon, pending final conditions, and the combined company will be renamed Vivmark Residential and remain in the S&P 500. Additionally, Sun Communities will replace Webster Financial in the S&P MidCap 400 effective prior to the opening of trading on Thursday, August 20, as Banco Santander S.A. acquires Webster Financial in a deal expected to be completed soon pending final conditions.
Reddit Reports Q2 2026 Revenue of $804.91 Million and $252.85 Million Net Income, Issues Q3 Guidance
Reddit, Inc. reported second-quarter 2026 revenue of US$804.91 million and net income of US$252.85 million, while also completing a US$240 million share repurchase program covering about 0.8% of its shares. The company issued third-quarter 2026 revenue guidance of US$860 million to US$870 million, signaling management confidence amid sensitivity to interest-rate expectations. The results and guidance frame investor expectations around whether recent 84% year-over-year ad growth can be sustained, with the key near-term catalyst remaining advertiser demand and the biggest risk being exposure to digital ads and potential macro or privacy headwinds.
Microsoft and Amazon Seen as Most Viable Buyers for Reddit
Reddit shares have fallen 32.5% year to date to $155.26 despite 61.1% revenue growth, putting its $29.9 billion market cap within reach of several tech giants. Microsoft and Amazon emerge as the two most viable suitors, with Microsoft offering OpenAI synergies and Amazon leveraging Reddit's high-intent shopping conversations. Super-voting Class B shares held by CEO Steve Huffman mean any acquisition requires insider consent, keeping Reddit independent without founder blessing. Meta and Alphabet face high antitrust risk, while a private equity buyout is a stretch given the equity check required. Analysts have a $216.35 price target on Reddit, implying Wall Street sees value the market currently ignores.
Bragar Eagel & Squire Investigates Reddit on Behalf of Long-Term Stockholders
Bragar Eagel & Squire, a nationally recognized shareholder rights law firm, is investigating potential claims against Reddit on behalf of long-term stockholders. The investigation follows a class action complaint filed against Reddit on June 18, 2025, with a Class Period from October 29, 2024 to May 20, 2025. The firm is examining whether Reddit's board of directors breached their fiduciary duties to the company. Long-term stockholders are encouraged to contact partners Brandon Walker or Melissa Fortunato at investigations@bespc.com or by telephone at 212-355-4648 to discuss their legal rights, with no cost or obligation.
Reddit Shares Soar 11% as Investors Revisit Strong Earnings
Shares of Reddit jumped 11% in afternoon trading as investors revisited the company's strong second-quarter earnings, rebounding from a recent sell-off. The stock had fallen more than 20% after the earnings release despite beating estimates, driven by concerns over choppy search referral traffic from Google and the absence of new AI data licensing deals. Second-quarter revenue climbed 61% year-over-year to approximately $805 million, and the company issued an upbeat third-quarter revenue forecast of $860 million to $870 million, surpassing Wall Street's expectations of around $830 million. Reddit remains down 35.4% year-to-date and is trading 42.3% below its 52-week high of $270.71 from September 2025.
Reddit Stock Split Between Value Hunters and AI Skeptics After Post-Earnings Plunge
Reddit shares have sold off sharply since its July 30 earnings report despite beating estimates, with retail traders on the platform itself split between value hunters and AI traffic skeptics. Reddit fell 13.7% over the past week and is down 32.7% year to date, though the stock rallied nearly 10% on August 3 to close at about $154.71. The selloff was triggered by CEO Steve Huffman noting that search referrals were choppy, overshadowing a quarter where EPS of $1.25 beat the $0.97 consensus, revenue of $804.9 million topped the $730.96 million estimate, and net income jumped 183%. Sentiment on Reddit swung from bullish to bearish, with r/wallstreetbets skewing bearish and r/investing leaning bullish, as value hunters point to eight consecutive quarters of 60%-plus revenue growth and a trailing PEG ratio of 0.1, while skeptics worry about Google search referral visibility and AI-driven traffic erosion. The next catalyst is the Google data licensing negotiation, which Huffman said has yet to find a win-win resolution.
Reddit Stock Trades at Historically Low Valuation After 39% Drop in 2026
Reddit shares have fallen 39% in 2026, pushing the stock to its lowest-ever forward earnings multiples. The stock now trades at less than 19 times analysts' consensus earnings estimate for the next four quarters and under 15 times the estimate for the following year. Revenue rose 61% in the latest quarter, with net income, adjusted EBITDA, and free cash flow more than doubling. The company has diversified beyond advertising through a premium ad-free tier and data licensing deals with major AI platforms, though non-advertising revenue still accounts for just 5% of the business. International users represent 59% of daily active uniques but generate less than 21% of revenue, suggesting room for growth. Reddit also guided for 47% to 49% revenue growth in the current quarter, up from its prior 43% to 45% target.
Roblox and Reddit Stocks Both Crashed Over 20%, but Only Reddit Is a Buy
Roblox and Reddit shares each plunged more than 20% after their July 30 earnings reports, but only Reddit presents a buying opportunity. Roblox's daily active users rose 10% to 123 million, missing the 128.7 million analyst estimate, and it forecast a 14% to 18% decline in bookings next quarter, while its gross margin remains around 30% and stock-based compensation weighs on profitability. Reddit's daily active unique users climbed 18% to 130.3 million, beating estimates, revenue surged 61% to $804.9 million, and earnings per share nearly tripled to $1.25, with third-quarter revenue growth projected at 47% to 49%. Reddit is also renegotiating a $60 million-a-year data-licensing deal with Alphabet that could serve as a catalyst, and its stock trades at a forward price-to-earnings ratio of just 15 times 2027 analyst estimates.
Reddit stock sinks 23% despite strong earnings as Google search traffic wobbles
Reddit shares dropped 23% after the company flagged choppy Google search referral traffic, overshadowing a strong second-quarter earnings report. Revenue rose 61% year over year to $805 million, net income more than doubled to $253 million, and earnings per share of $1.25 beat the $0.95 consensus estimate. Third-quarter revenue guidance of $860 million to $870 million also topped Wall Street's $854 million forecast. CEO Steve Huffman acknowledged volatile search referrals but emphasized that the commercial business remains strong and that Reddit is building for direct app engagement, where daily active unique users grew 18% to 130.3 million. The market focused on the risk that Google's AI-generated answers could reduce click-throughs to Reddit, even as the company reported its first trailing 12-month operating cash flow above $1 billion.
Apple and Amazon lead midday movers after earnings reports
Several stocks made big midday moves following earnings reports and other developments. IES Holdings surged over 30% after beating quarterly expectations and approving a two-for-one stock split, while GoDaddy tumbled 20% on disappointing guidance and a cash flow miss. Newell Brands rose 11% after lifting its full-year earnings outlook above consensus, and SPX Technologies rallied 14% on strong results and raised guidance. Veracyte fell 24% despite beating estimates and raising revenue guidance, and Replimune Group soared over 94% after an FDA panel backed its skin cancer drug trial. Jersey Mike's gained 6% on its second day of trading after a weak debut. Chevron added 1.6% on better-than-expected earnings, while ExxonMobil slipped 2% on a profit miss. Moderna dipped 1% despite a top- and bottom-line beat. Amazon jumped 15% on strong revenue and cloud growth, but Apple dropped more than 9% even with higher iPhone sales. Coinbase slid over 12% after a wider-than-expected loss, Reddit sank 22% on search traffic concerns, and Novo Nordisk fell 9% after a drug trial failed to meet its main goal.
Reddit Plunges 24% on Traffic Warning While Alphabet Gains 5%
Reddit cratered 24% despite beating Q2 estimates with $805 million in revenue, while Alphabet gained 5% in the same session. Reddit CEO Steve Huffman warned that Google search referrals turned choppy, overshadowing a beat-and-raise quarter that included earnings per share of $1.25 and a raised third-quarter revenue outlook of $860 million to $870 million. The sell-off left Meta Platforms roughly flat and Snap down just 2%, highlighting a divergence between AI infrastructure winners and content platforms dependent on search traffic. Reddit also disclosed no new AI data-licensing deal, disappointing investors who had hoped for another agreement alongside existing pacts with OpenAI and Google.
Replimune surges over 130% premarket after FDA panel backs skin cancer drug
Replimune Group shares surged more than 130% in premarket trading after a Food and Drug Administration advisory panel voted in favor of the company's RP1 drug trial results for a type of skin cancer, prompting Wedbush Securities to upgrade the stock to outperform from neutral. Chevron edged higher after reporting second-quarter net income of $12.1 billion, a nearly 400% increase from a year earlier, while ExxonMobil fell 2% on adjusted earnings of $3.52 per share that missed the $3.60 estimate. Amazon jumped over 11% after its cloud revenue grew 37% year over year, the fastest pace in 18 quarters, but Apple dropped more than 7% despite stronger-than-expected fiscal third-quarter revenue driven by a 22% rise in iPhone sales. Moderna lost over 4% even as its second-quarter loss of $1.97 per share on revenue of $145 million beat expectations, and Coinbase slid more than 5% after posting a third straight quarterly loss of $359.5 million, or $1.36 per share, far wider than the anticipated 17-cent loss. Reddit tumbled 12% as CEO Steve Huffman described search-referral traffic as choppy, overshadowing an earnings beat and guidance that sailed past estimates, while Novo Nordisk plunged more than 10% after phase 3 trial results showed its drug ziltivekimab failed to reduce major cardiovascular events compared to placebo.
Reddit Beats Q2 Estimates as AI Advertising Grows and Search Risks Emerge
Reddit reported second-quarter results that surpassed earnings estimates, driven by rapid expansion in AI-driven advertising. The company highlighted a rising advertiser base using its AI tools to target Reddit's interest-based communities. Management also flagged ongoing risks tied to search-driven traffic volatility and unresolved Google data licensing terms for AI training.
Amazon shares surge 9% on strong cloud growth, Apple drops 4% after hours
Amazon shares jumped more than 9% in extended trading after the company reported better-than-expected second-quarter revenue and cloud growth, with its cloud segment revenue expanding 37% year over year, the fastest growth in 18 quarters. Apple shares fell more than 4% in volatile after-hours trading despite reporting stronger-than-expected fiscal third-quarter revenue driven by a 22% increase in iPhone sales. Coinbase slid more than 5% after posting a third straight quarterly loss of $359.5 million, or $1.36 per share, missing analyst estimates of a 17-cent loss, while revenue of $1.22 billion fell short of the $1.31 billion estimate. Rivian Automotive rose nearly 2% after reducing its 2026 spending plans and slightly narrowing forecasted losses this year, while reconfirming a delivery target of 65,000 to 70,000 vehicles. Reddit sank over 7% as CEO Steve Huffman described search-referral traffic from Google as choppy, even though the company beat second-quarter earnings estimates and issued guidance that sailed past expectations. First Solar gained more than 3% after reporting second-quarter earnings of $3.92 per share, beating the FactSet consensus estimate of $2.99, with revenue of $1.06 billion matching views.
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