Seeking Alpha
01 Nov 2026, 12:35 UTC · 2h ago
Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
Impact · against what's priced in
The news is largely priced in for Reddit, as the market has already factored in decelerating user growth and the competitive threat from Google AI. While strong ARPU growth is positive, the price currently rejects the bull case of sustained high growth, making the current results a confirmation of the baseline rather than a catalyst.
- RDDT+0.00
Already priced in
- The price assumes
Revenue growth decelerating from 69% in FY2025 to roughly 15.6% annually
The 53% revenue growth and ARPU increase to $13.82 are positive, but the price already reflects a transition toward slower long-term growth and is explicitly not paying for the high-growth bull case.
What RDDT's price assumes · Sep 3
