Reddit slumps on concerns over Google content deal
RDDT•Brokerage commentary and stock performance
Reuters has reported the contract with Google is worth about $60 million per year.
DA Davidson says the report suggests a shift in how Reddit management views Google, which is important because investors had expected details on renewals to be announced in the coming quarters; the brokerage rates the stock "buy" with a price target of $200.
20 out of 30 brokerages rate the stock "buy" or higher, nine "hold" and one rate it "sell"; median PT is $240.
Including session's move, stock has fallen 26.4% YTD.
Shares fall on report of Google content access talks
- Shares of social media company Reddit RDDT.N down 9.4% to $168.38
- Reddit has discussed cutting off Google's GOOGL.O access to its content for AI use, the WSJ reported on Tuesday, citing people familiar with the matter
Reddit says partnerships should reflect the value of its data
A Reddit spokesperson told Reuters the company's goals remained to ensure partnerships support its business and reflect the value of Reddit's data, adding that the company would discuss various options at the negotiating table.
DA Davidson said the move could be an attempt by Reddit to drive more traffic to its app amid potential changes in Google search.
