Reddit reportedly considers restricting Google's access to content; RDDT shares fall 8.3%

Here is the rewritten news content, structured as clean, professional English Markdown.

Publication Date: 2026-07-25 13:00:02

Reddit Could Limit Google’s Access to Its Content. What That Means for RDDT Stock.

By Subhasree Kar Sat, July 25, 2026 at 6:00 AM PDT | 5 min read

• RDDT
• GOOG

A hand holding a phone with the Reddit logo. Credit: Mamun_Sheikh via Shutterstock

Reddit (RDDT) shares moved lower following reports that the social media platform is considering restricting Alphabet’s (GOOG, GOOGL) access to its user-generated content. The development highlights growing tensions between publishers and AI companies over the value of online data.

The reported move comes as Reddit and Google negotiate the renewal of their artificial intelligence (AI) licensing agreement, originally signed in 2024 and reportedly worth approximately $60 million annually.

According to reports, Reddit believes that Google’s AI-powered search features are reducing referral traffic by answering users’ questions directly, thereby limiting the need to visit Reddit’s website. While no final decision has been made, Reddit is evaluating whether the current licensing arrangement fairly reflects the value of its content in the AI era.

More News from Barchart

• Texas Instruments vs. Qualcomm: One Pays Out 94% of Earnings. The Better Dividend Chip Stock Is Clear.
• Mark Cuban Says His Black Amex Got Declined Buying a $140,000 Bottle of Champagne After Mavs Win in Miami — 'Can I Please Spend Some Money?'
• HIMS Stock Sinks as FDA Gives Hims & Hers Peptide the Cold Shoulder
• Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment — delivered right when you need the info most. Subscribe today!

On one hand, a breakdown in negotiations could jeopardize a lucrative, high-margin licensing revenue stream while also risking lower visibility in Google Search, which remains an important source of traffic for Reddit. These concerns weighed on the stock following the reports.

On the other hand, Reddit’s vast archive of human conversations has become one of the most valuable data sources for training large language models. This gives the company meaningful negotiating leverage as AI developers increasingly compete for premium content. If Reddit secures improved pricing or a more favorable revenue-sharing structure, the long-term value of its data licensing business could increase.

The outcome of Reddit’s negotiations with Google could have important implications for both future licensing revenue and long-term user growth. Amid this, what should be your move?

About Reddit Stock

Reddit is a social media platform that hosts millions of user-created communities, known as subreddits, where users share content and engage in discussions on topics such as technology, finance, sports, entertainment, and current events. The company generates most of its revenue from digital advertising while expanding into high-margin data licensing agreements with AI companies seeking access to its vast repository of human-generated conversations. Reddit is headquartered in San Francisco, California, and has a market cap of $32.5 billion.

Story Continues

Despite a sharp pullback in recent months, Reddit stock has delivered 14.68% gains over the past 52 weeks, reflecting investor optimism around the company’s advertising business and growing AI data licensing opportunities. However, the shares have struggled in 2026 and remain down by 26.1% year-to-date (YTD) as investors reassess growth expectations, competitive pressures, and the long-term impact of AI-powered search on user traffic. The stock is down nearly 40% from its high of $282.95 reached last year.

Selling pressure intensified on July 22, when Reddit shares fell 8.3% intraday following reports that the company was considering restricting Google’s access to its content during negotiations over their AI licensing agreement. Investors worried that a deterioration in the relationship could jeopardize a lucrative licensing deal while also reducing referral traffic from Google Search, sending the stock to one of its steepest single-day declines in months.

Chart placeholder Source: www.barchart.com

However, the stock still appears to be trading at a significant premium compared to industry peers, with a forward price-to-earnings ratio of 35.14.

Steady Q1 Performance

Reddit released its first-quarter 202...