Reddit (RDDT) Stock Drops 9% After Report It May Cut Google AI Access
TLDR
- Reddit stock fell 9% after reports it may end Google’s access to its content for AI training
- Reddit and Google have a $60M/year deal expiring soon, with renewal talks ongoing
- Ad revenue rose 74% year-over-year in Q1, making up 94% of total revenue
- Wall Street has an average price target of $226.29, implying ~34% upside
- RDDT stock is down roughly 27% since the start of 2026
Reddit stock dropped 9% on Wednesday after the Wall Street Journal reported the company has internally discussed cutting off Google’s access to its content for AI training.
Reddit and Google signed a $60 million-a-year deal in 2024 giving Google the right to train its AI models on Reddit’s content. That deal is nearing its end, and the two sides are now in talks about renewing it.
The problem? Google’s AI-powered search responses are reducing traffic to third-party sites, and Reddit’s leadership is questioning whether the deal still makes sense.
Reddit is not the only one feeling the squeeze. USA Today’s organic Google search traffic from U.S. readers fell nearly 50% in the twelve months ending June 2026, according to Semrush data. Politico fell 23%, CNN dropped around 25%, and Business Insider lost more than 85%.
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