Reddit reports a solid quarter but shows signs of AI’s impact
Reddit reported a strong second quarter but spooked investors by mentioning in an investor letter that traffic from search engines had grown “choppy.” The company’s total revenue of $805 million jumped 61% compared to the year-ago quarter while net income was $253 million, up 183%. Plus, the company said it expects to hit revenue of $860 million to $870 million with healthy earnings before taxes next quarter as well, which beat expected guidance. Normally, telling investors that they can expect even better results to come would cause a stock to rise.
- ▪Reddit reported a strong second quarter but spooked investors by mentioning in an investor letter that traffic from search engines had grown “choppy.” The company’s total revenue of $805 million jumped 61% compared to the year-ago quarter w
- ▪Plus, the company said it expects to hit revenue of $860 million to $870 million with healthy earnings before taxes next quarter as well, which beat expected guidance.
- ▪Normally, telling investors that they can expect even better results to come would cause a stock to rise.
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| Original publisher | TechCrunch |
| Canonical URL | https://techcrunch.com/2026/07/30/reddit-reports-a-solid-quarter-but-shows-signs-of-ais-impact/ |
| Publication time | Thu, 30 Jul 2026 23:08:58 +0000 |
| Retrieval time | 2026-07-30T23:12:31.953Z |
| Last seen | 2026-07-30T23:12:31.953Z |
| Headline source | Publisher (no WeSearch rewrite) |
| Excerpt source | publisher body |
| Excerpt method | First ~120 words (~800 chars) of extracted publisher body, fair-use limited. |
| Summary | WeSearch · cerebras-chat (WeSearch summarizer) |
| Summary source text | contentText |
| Citation coverage | Summary is a WeSearch-generated derivative; primary citation is the original publisher URL. |
| Cluster | lGcDwCEK-pKI · 1 stories |
| Cluster logic | Grouped by semantic title/content similarity across sources within a rolling window. Same-publisher template collisions are excluded from coverage comparison. |
| Ranking reason | Story pages are not engagement-ranked. Hub feeds use recency, with optional source-diversified chronological ordering (cap consecutive stories per source). No personalized ranking. |
| Publisher visit | Yes — open original |
| Substitutes article? | No — link-out required for full text |
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| Indexing | May the item be indexed (stored, ranked, made findable)? | Allowed |
| Snippet | May a short excerpt of the publisher's text be shown? | Allowed |
| AI summary | May WeSearch generate its own short summary of the article? | Limited |
| Retrieval / RAG | May the content be exposed for third-party retrieval-augmented generation? | Not asserted |
| Model training | May the content be used to train AI models? | Not asserted |
| Commercial reuse | May the content be reused commercially? | Not permitted |
Basis: Derived from the published RSS/Atom feed. Contact: [email protected]. Reviewed: 2026-07-24.
Opening excerpt (first ~120 words) tap to expand
Reddit reported a strong second quarter but spooked investors by mentioning in an investor letter that traffic from search engines had grown “choppy.” The company’s total revenue of $805 million jumped 61% compared to the year-ago quarter while net income was $253 million, up 183%. These beat Wall Street’s expectations. Plus, the company said it expects to hit revenue of $860 million to $870 million with healthy earnings before taxes next quarter as well, which beat expected guidance. Normally, telling investors that they can expect even better results to come would cause a stock to rise. But the stock slid over 10% in after-hours trading. The culprit was likely CEO Steve Huffman’s warning in that separate letter to shareholders.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at TechCrunch.
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