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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/22/2026 | 324.22 |
| Change that session | -3.15% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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- Will Slower Growth Outlook Change Reddit Stock Narrative
Reddit reported 66.6% revenue growth over the four quarters to June 2026, but guidance for 47% to 49% growth in Q3 points to a cooler near-term pace. Beyond advertising, AI data licensing is a second growth engine, with about US$35 million in one recent quarter against roughly US$500 million in total sales. The key risk is that Google AI direct answers could reduce traffic to Reddit and dilute its monetization. The article argues the slowdown may look more like a reset in expectations than a break in the thesis, provided user engagement and data licensing deals hold up. The narrative projects US$6.0 billion in revenue and US$2.1 billion in earnings by 2029.
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This article assesses the risk of holding Reddit (RDDT), listed for about 2.5 years, alongside index funds. Over the past year, Reddit moved more than the S&P 500 in both directions: on the index's average up day of 0.65%, a $10,000 investment in Reddit grew to about $10,130, while on its average down day of 0.6% it fell to about $9,850. Reddit's volatility was 70% a year, versus 13.0% for the S&P 500. Since listing, Reddit returned 56% a year against roughly 17% for the S&P 500, but its 81% volatility left a lower return per unit of swing (0.69 versus about 1.1 for the index). Advertising made up $762 million of the $805 million in Q2 2026 revenue, up 61% year over year, yet management said search referrals declined and it has little visibility into search traffic, so the article expects the stock to stay volatile.
- Reddit Sinks 5% as Slower Growth Guidance Looms Over Earnings; Snap Drops 3%, Meta Holds Steady
Reddit shares fell about 5% to $136.52 in morning trading as guidance for slower third-quarter 2026 revenue growth weighed on the stock ahead of its earnings report. Management guided third-quarter revenue to $860 million to $870 million, following second-quarter sales of $804.9 million, up 61.1% year over year. Reddit also said it will stop separately reporting logged-in and logged-out daily active users after weak U.S. logged-in user growth. Snap fell 3% to $6.16, while Meta rose 0.2% to $643.55. The article says advertising is the key test, with segment revenue of $762 million up 64% last quarter, and notes Reddit also licenses its data to AI developers.
- Was There Any Sign Snap Stock Would Run?
Snap (SNAP) stock rose 42.7% between July 22 and October 20, 2026, versus 3.1% for the S&P 500, after falling 39.3% in the six months before July 22. Snap had reported faster revenue growth for three consecutive quarters, rising from 8.7% in the quarter ended June 2025 to 12.1% in the quarter ended March 2026, and had named small businesses as its main source of ad growth. Its second-quarter 2026 revenue rose 19% to $1.6 billion, and the shares climbed 14.9% the next day. Advertising revenue grew 9% to $1.28 billion, while other revenue, led by Snapchat+, grew 85% to $316 million and made up about a fifth of total revenue. Management forecast third-quarter revenue of $1.70 billion to $1.74 billion, about 14% growth at the midpoint, citing the expected normalization of World Cup-related spending and a tougher year-over-year comparison.
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Snap (SNAP) stock fell 28% over the past 12 months, while the S&P 500 returned 17.0%, and the article focuses on Snapchat's direct subscription revenue. Of 971 million monthly active users in fiscal Q2 2026, fewer than 3% paid, but revenue outside advertising grew 85% to $316 million, led by Snapchat+, Memory Storage and Lens+, while ad revenue rose 9% to $1.28 billion. The net loss shrank to 4.9% of trailing revenue from 30% three years earlier, and the company has posted positive free cash flow for eight straight quarters and expects sustained positive net income from 2027. Management cited long-term app subscription penetration of 7% to 12% as a comparison point, and raised its full-year infrastructure cost forecast to $1.65 billion to $1.70 billion. Risks include several U.S. youth online safety trials scheduled for later in 2026 that could force product changes and affect user engagement.
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