- Reddit will shut down RSS feeds and phase out its public API by November 13, 2026, citing large-scale scraping and automated abuse as the reason.
- The move protects Reddit’s human conversation corpus from being freely harvested for AI training and supports content licensing deals with AI firms; content licensing revenue has grown 24%.
- Reddit is shifting users to the controlled Devvit platform to manage rising infrastructure costs; CEO Steve Huffman said Reddit cannot subsidize commercial entities.
- Reddit stock is down 28.6% over the past year; Q2 2026 revenue was $804.9 million with net income of $252.8 million and net margin of 31.4%, up from 17.9% a year earlier.
- Bull case fair value was $219 on 33.6% revenue growth and 28.4% margin; bear case fair value was $129 on 24.6% revenue growth and 21.5% margin with regulatory and compliance risks.
Quotes
“cannot subsidize commercial entities”
“The market does not usually hand out fifty plus percent off a genuinely good business for no reason, so before that number pulls me in, I go find the reason. If I can’t find one, I assume I built the model wrong before I assume I found a once-in-a-decade gift.”