Reddit Surges 3.09% as Google Algorithm Fears Lift Trading Volume to 142nd Largest

On July 30, 2025, Reddit (RDDT) closed with a 3.09% gain, trading on a volume of $0.78 billion, ranking 142th in the day’s market activity. The stock’s performance came ahead of its Q2 earnings report, as investors weighed concerns over Google’s algorithm changes and user growth trends.

Analysts expect Reddit to report $0.72 per share in earnings for the quarter, reversing a $0.06 loss in the prior-year period. Revenue is projected to rise 50% to $425 million, driven by a 20% year-over-year increase in global daily active users (DAUs) to 110 million. However, US DAU growth remains a concern, having decelerated from 47% in Q3 2024 to 31% in Q1 2025. Google’s algorithm shifts, which account for 40-50% of Reddit’s traffic, have historically caused volatility in user metrics and stock performance.

Despite recent gains, Reddit’s shares remain below February’s $220 peak and are down nearly 10% in 2025. Analysts from Needham and Jefferies reiterated Buy ratings, citing stabilization in DAU growth and the company’s AI-driven ad tools as monetization catalysts. However, near-term risks persist, with CEO Steve Huffman acknowledging potential “bumps” due to ongoing changes in the search ecosystem.

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