Reddit shares slide 21% to US$140.67 after earnings omit new AI data-licensing deals
AI Market Summary
Reddit shares fell 21% after earnings failed to deliver new AI data-licensing agreements, undermining expectations for revenue diversification beyond advertising. This disappointment outweighed strong fundamentals: Q2 revenue +61% YoY, raised Q3 guidance above consensus, and first-time trailing 12-month $1B free cash flow. The reaction highlights how tightly valuation is linked to incremental AI deal traction and perceived user-growth/search-traffic risks.
Impact level
● Medium
Affected assets
NCSKRDDT2USD/USDT+9.65%
AI Insight · NCSKRDDT2USD/USDTAI Insight
▼ Bearish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Reddit shares sank 21% on July 31 to close at US$140.67, the stock’s biggest single-day drop since the company went public in 2024, and the shares are down 39% so far this year. The selloff came despite Reddit lifting its Q3 revenue forecast to US$860 million to US$870 million and posting Q2 revenue up 61% to US$805 million, driven mostly by advertising. Investors were disappointed by the lack of fresh progress on major AI-related data-licensing partnerships.
