Reddit stock sinks on report of potential Google AI deal non-renewal

Reddit shares declined between 6% and 9% following reports of friction in licensing deal renewal talks with Google. This potential non-renewal puts approximately $60M in annual revenue at risk for RDDT. The stock drop occurred as reports surfaced that Google might be cut off from accessing Reddit's AI data, creating significant financial uncertainty for the company as it navigates the terms of its AI data licensing agreement with the tech giant.