Some stock drops present meaningful long-term buying opportunities for patient investors who can ignore the noise.
Reddit (NYSE: RDDT) looks like one of those growth stocks
It’s down by more than 30% year to date, but its fundamentals show rising revenue and more users. The fear of AI is overblown Artificial intelligence (AI) has helped many industries, but some people believe this same technology can hurt Reddit’s business. The premise is that generative AI models and advanced search engines can cut into Reddit’s traffic, especially since Reddit has no control over what results those search engines display.
For instance, analysts reported that Alphabet’s search snippets prioritized YouTube over Reddit in search results. While it is a legitimate concern, Reddit’s first-quarter 2026 earnings results indicate it is overblown. Reddit wrapped up Q1 with 126.8 million daily active users, which is up by 17% year over year.