Reddit (RDDT) May Rethink $60 Million Google AI Deal As Renewal Talks Drag
Yahoo Finance ·
Reddit (RDDT) May Rethink $60 Million Google AI Deal As Renewal Talks Drag Bailey Pemberton Wed, July 22, 2026 at 7:12 PM EDT 2 min read RDDT Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Reddit (NYSE:RDDT) is reportedly reconsidering its reported US$60 million per year AI licensing agreement with Google. The company may block Google's AI systems from accessing Reddit content if renewal talks do not progress. The agreement is a key part of Reddit's data licensing approach and a visible AI partnership for the platform. This report comes at a time when platforms and AI companies are reassessing how data is valued and compensated. For investors, the outcome of Reddit's talks with Google could shape views on its leverage in AI negotiations and how it prices access to its content in future deals. Stay updated on the most important news stories for Reddit by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Reddit. See which insiders are buying and buying and selling Reddit following this latest news. ⚖️ Price vs Analyst Target : Reddit trades at US$170.38 versus an analyst target of US$227.30, around 25% below the consensus target range midpoint. ✅ Simply Wall St Valuation : The stock is flagged as undervalued, trading about 51.7% below one estimate of fair value. ⚖️ Recent Momentum : The 30 day return is flat, with a reported 0.0% move over the period. There's only one way to know the right time to buy, sell or hold Reddit. Head to Simply Wall St's company report for the latest analysis of Reddit's Fair Value . 📊 The potential reset of the US$60 million Google AI deal puts a spotlight on how much of Reddit's value investors link to data licensing versus its core community platform. 📊 Watch updates on licensing negotiations, any changes in reported data licensing revenue, Reddit's P/E of 46.36 compared with the industry average of 15.65, and how analysts adjust the US$120 to US$300 target range. ⚠️ The key risk around this news is concentration on a single high profile AI partner and the possibility that tougher terms or a breakdown in talks could affect confidence in Reddit's pricing power for its content. For the full picture including more risks and rewards, check out the complete Reddit analysis . Alternatively, you can check out the community page for Reddit to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RDDT . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
DYAX Investor Sentiment
Bullish (Long) 72% · Bearish (Short) 28%
357 participants
Related News
- Century Communities raises 2026 delivery outlook to 9,750-10,500 homes as it targets low to mid-single-digit community growth
- Crude oil adds to gains after Houthis attack two Saudi tankers in the Red Sea
- Texas Instruments forecasts Q3 revenue of $5.65B-$6.15B as it starts customer-by-customer price increases
- Kinder Morgan targets full-year adjusted EPS at least 12% above budget while projecting additional 2026 FIDs
- Warren Buffett Cut Off Donations to the Gates Foundation, but His Influence Is Evident in the Nonprofit's Top Holdings
- TSLA Stock Continues Slide After Musk Says ‘A Little Less Capital Efficient’ Is Acceptable — Warns Of Rising Capex for Next 2-3 Years
