Reddit Stock Slides After Report It Could Limit Google's AI Access

Reddit shares fell nearly 10% after a Wall Street Journal report said the company is considering limiting Google’s access to its user forums for AI training and search use. The article highlights growing friction between Reddit and Google as AI Overviews potentially divert search traffic away from Reddit, while Reddit seeks better compensation in renewed content-licensing talks. Reddit’s 2024 agreement with Alphabet was reportedly worth $60 million annually, underscoring the commercial importance of the relationship. The stock broke below its 50-day moving average for the first time since late June, adding a technical headwind on top of the headline risk. The market is likely reacting to the possibility that any disruption to Google licensing or traffic monetization could pressure Reddit’s near-term revenue narrative ahead of its July 30 Q2 earnings report.