Archived explainer. For the current picture see today's RDDT page.
REDDIT INC A (RDDT) is down -8.32% in the latest session. Our newswire has captured 23 stories on RDDT across 14 sources in the last 36 hours, with AI sentiment reading bearish (avg 40/100).
Reddit Inc A (RDDT) fell 8.32% to $170.38 in morning trading on Wednesday, marking one of the largest declines in its recent price trajectory. The drop came amid reports that Reddit is considering not renewing its AI content licensing deal with Alphabet, which could significantly impact the company’s access to data for training Google’s artificial intelligence models. The stock opened with a -5.2% gap down and has continued to trade lower throughout the session.
The primary driver of the sell-off was a report from the Wall Street Journal, published on July 21, 2026, indicating that Reddit is reviewing its partnership with Google and may choose to cut off access to its content for AI training. Alphabet currently pays Reddit approximately $60 million annually for this data. The potential termination of the deal has raised concerns about Reddit’s monetization strategy and its reliance on third-party partnerships. Analysts from Wells Fargo, RBC Capital Markets, and DA Davidson have maintained their ratings and price targets, but the market appears to be pricing in uncertainty. The stock has also fallen below key technical levels, including the 50- and 200-day moving averages, exacerbating the downward pressure.
The intraday session has shown a sharp decline, with the stock hitting a low of $166.00 before recovering slightly to $170.68. Volume has surged to 6.7 million shares, nearly 1.4 times the 3-month average. Over the past 8 trading sessions, the stock has fallen 15.7%, from $200.93 to $169.31. The recent insider selling activity is also notable, with Reddit’s CEO, COO, and CFO all reporting sales in the past two weeks. Additionally, unusual options activity has been observed, with $5.6 million in call premiums compared to $1.2 million in puts, suggesting some speculative positioning.
Reddit is scheduled to report its next earnings release soon, and the market will be closely watching for any further updates on its partnership strategy and financial performance. The stock’s ability to stabilize above its 50-day moving average could be a key near-term indicator of investor sentiment.
AI-assisted analysis composed exclusively from headlines and data on the Top Tier newswire. Not financial advice.
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Shares in Reddit ($RDDT) plunged by over 9% on Wednesday afternoon following reports that the social media company will not renew its AI content deal with Alphabet’...
Alphabet’s Google pays Reddit around $60 million a year to scrape conversation data from the social media site. That could change.
Wells Fargo, RBC Capital Markets, and DA Davidson maintained their respective ratings and price targets on Reddit following the WSJ report surrounding the company’s current contract with Google.
Comprehensive up-to-date news coverage, aggregated from sources all over the world by Google News.
More on RDDT: full news and sentiment history. Sentiment scores are AI-derived research signals, not financial advice.
Earlier RDDT move explainers: 2026-07-30 · 2026-07-27 · 2026-07-23 · 2026-07-22 · 2026-07-16