Despite these developments, Redburn Atlantic analyst James Cordwell has given Reddit's stock a "sell" rating, citing vulnerabilities in user growth tied to Google's algorithm changes. Reddit's stock price reflects this tension, with limited growth in organic users over the past six months, indicating little change in Reddit's intrinsic appeal. Wallstreetpit.com highlights the dual nature of Reddit's position, where partnerships with tech giants like Google can both drive and threaten growth, especially as AI tools like Vertex AI influence content visibility and consumption.
Key takeaways:
- Reddit has expanded its partnership with Google to use Vertex AI for improving search on its platform.
- Redburn Atlantic analyst James Cordwell has given Reddit's stock a "sell" rating due to vulnerability to Google's algorithm changes.
- Google will integrate Reddit content more across its products and have access to Reddit's API for real-time, structured content.
- Despite the partnership, Reddit's organic user growth has remained largely unchanged, indicating structural challenges in its appeal.