Reddit Inc (NYSE:RDDT) is near the bottom of the New York Stock Exchange (NYSE) today, last seen down 22.9% to trade at $137.27. The social media platform reported adjusted second-quarter earnings of $1.25 on $805 million in revenue, both of which topped estimates. However, choppy search referrals and a slowdown in U.S. user growth triggered the selloff, as concerns remain about Reddit’s reliance on Google's ever-shifting AI adoption.
"An underrated AI-adjacent earnings report I’m watching next week: Reddit (RDDT). Gapped lower by 7.3% after reportedly discussing cutting Google’s access to its content for AI use. The options market is pricing in a 16.2% post-earnings move."
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Reddit stock is heading for its worst single-session decline since March 2025. The shares are now down 39.7% in 2026 and have breached their 52-week breakeven level.
Analysts have a lot to say. Seven brokerages trimmed their price targets, including Wells Fargo to $143 from $187. B. Riley and Truist hiked their targets to $270 and $275, respectively. Given RDDT's lofty 12-month consensus price target of $231.36 is a 54% premium from its current perch, more bear notes could weigh on the equity.
Options traders are loading up. In just the first half hour of trading, over 90,000 contracts have changed hands, volume that's nine times the average intraday amount. The weekly 8/7 185-strike call is seeing notable buy-to-open activity.
