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Reddit beats on earnings and guidance, shares drop 7% as search referrals turn choppy

7/31/2026

Reddit's second-quarter results beat on both revenue and earnings, and the company's forward revenue forecast came in above analyst expectations.

The shares fell 7% anyway, as investors focused on what the company described as choppy search referrals.

What the report actually showed The beat was clean across both lines in the second quarter, and management's revenue outlook for the period ahead also topped estimates.

On the conventional scorecard, that is a strong quarter. The case for optimism rests on that record.