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Reddit stock sinks as Google AI traffic squeeze prompts deal rethink

7/22/2026

When a search engine's AI answers the query on the results page itself, the click never comes.

That is the mechanism Reddit is reportedly weighing as it considers whether to renew its content licensing agreement with Google.

The Wall Street Journal reported that Google's AI-generated summaries have reduced the volume of traffic flowing from search results to third-party websites, and Reddit is reconsidering the benefits of the deal as a result.

The traffic floor that defines the deal's value The economics of a content licensing arrangement between a publisher and a search engine rest on a two-way assumption: the licensor provides data, and in exchange receives some combination of cash and distribution.

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