1220 ET - With Reddit's ad revenue likely to hit snags from Google's upcoming AI search updates, the platform's data licensing business likely isn't helping, Wells Fargo Securities analysts said in a research note. Reddit's troves of user-generated content are extremely valuable, and will only become more so as users increasingly turn to AI tools for direct answers, the analysts said. But as such changes in user search behavior accelerate, granting third-party access to Reddit's valuable content for a relatively insignificant amount could cap its long-term user growth prospects, the analysts said. That would pose serious risks to its ad business, and in turn, its long-term goal to become an independent ad platform, they said. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
May 20, 2025 12:20 ET (16:20 GMT)
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