- Reddit reported Q2 revenue of $804.9 million, up 61% year over year, and diluted EPS of $1.25; its Q3 guidance exceeded Wall Street expectations.
- RDDT closed 20.99% lower at $140.67 on July 31 despite the earnings beat, with investors focused on a sequential decline in US daily users.
- A Seeking Alpha analysis characterized the post-earnings selloff as an accumulation opportunity, citing Reddit's LLM data-licensing position, growth in other revenue, and higher free cash flow.
- Key risks identified include AI search affecting traffic, user-retention challenges, and uncertainty over renewal of Reddit's Google licensing agreement.