AI Warning: Why Analysts Think It May Be Time to Sell Reddit Stock

Reddit (RDDT) built its empire on curiosity, with users landing on threads through random searches, diving into unfiltered opinions and rabbit-hole conversations. But that traffic lifeline is now under siege. More than half of Reddit’s users browse while logged out, meaning their visits often start with Alphabet's Google (GOOGL). That is where the game is changing.

Google’s artificial Intelligence (AI)-powered search is evolving fast, and the ripple effect could hit content platforms hard. As Google leans further into generative AI search results, platforms like Reddit, which rely heavily on search-driven traffic, face a growing threat. With AI potentially reducing the need to click through to Reddit, analysts are sounding the alarm.