Key Takeaways
- Reddit shares fell 6% after Similarweb data showed a 13% drop in global visits, which Business Insider blamed on Google’s AI Overviews.
- Most of the lost visits were logged out, and the logged-in users behind over 80% of its monetization are still growing.
- Pinterest’s record user count and Meta’s rising ad prices suggest advertisers keep paying for audiences that come back on their own.
- Reddit’s forward P/E is about half its one-year average, so the AI fear already looks priced in.
Reddit (RDDT) is down 6% today after Business Insider reported that its global visits fell 13% from October 2025 to October 2026, according to Similarweb, and blamed Google’s AI Overviews.
Two other ad platforms have a stake in this. Pinterest (PINS) lists changes at search engines among its own risks. Meta Platforms (META) sells ads to the kind of logged-in audience Reddit is now betting on.
The users who pay are still showing up
On Reddit’s third-quarter call, CEO Steve Huffman said Google’s AI Overviews “are not traffic drivers.” U.S. daily active uniques fell to 50.7 million from 53.2 million in the second quarter. All of the drop came from logged-out users, and logged-in U.S. users rose 1% to 23.4 million.
COO Jen Wong said on the call that “over 80% of our monetization sits on the shoulders of logged-in in-app users.” Third-quarter revenue rose 53% to $895 million. Analysts expect revenue to keep growing through 2028:
I don’t think a count of mostly logged-out visits should make them cut those numbers.
Pinterest and Meta point the same way
Pinterest isn’t showing the squeeze yet. Its monthly users hit a record 661 million in the third quarter, up 10%, and users in the U.S. and Canada rose 4% to 107 million. Monthly users aren’t visits, though, so its report in early February will show whether Google is costing it traffic too.
Meta shows what logged-in users are worth. Its third-quarter revenue rose 26% to $64.6 billion, and its price per ad rose 14%. That’s the model Reddit is chasing as it pushes visitors to log in.
TIKR tracks 32 analysts on Reddit. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Reddit, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Reddit’s Analyst Ratings
Priced for a lot worse
Reddit’s forward P/E is close to its low for the past year:
Reddit traded at 12x forward earnings at the last close, against a one-year average of 25x, and today’s drop takes it even lower.
Huffman has warned that unique visits could fall by a low double-digit percentage if the search trend continues. Even so, Reddit looks cheap to me for a business whose paying users keep growing. Its fourth-quarter report in early February is the next test.
So what is Reddit stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
