Reddit reports a solid quarter but shows signs of AI’s impact

Reddit beat Q2 estimates with $805 million in revenue and $253 million in net income, and it guided Q3 revenue to $860 million-$870 million.

Even so, the stock fell more than 10% as investors focused on choppy search referrals and concerns that AI search summaries could hurt traffic.

Reddit said global users grew, but U.S. daily active uniques slipped slightly quarter over quarter.

Wall Street is also watching whether Reddit’s data licensing deals, including with Google and OpenAI, will be renewed.