Reddit outran Alphabet for more than two years, then lost the lead in a day
Total return indexed to 100 at the May 14, 2024 AI Overviews general release. Through October 30, 2026. Reddit led from September 2024 until its October 30 drop
Silvia Insights research desk
The company accused of starving the web of clicks has been a better stock than the sites that depend on those clicks.
Since Google rolled out AI Overviews on May 14, 2024, Alphabet has returned 66 percent through October 30, even after a nearly 13 percent drop on October 29. Through October 30, Reddit was up 47 percent, while Pinterest was down 54 percent and Snap down 66 percent.
Reddit had been ahead of Alphabet on every trading day since September 5, 2024. It lost the lead on October 30 with a 29 percent drop, its worst day since its 2024 IPO, after a weak outlook and its CEO's warning that Google's AI Mode does not drive traffic.
Owning the search box has paid better than depending on it.
This chart comes from a new Silvia Insights research report. Members received the full analysis last week, including the actionable trade ideas, risks and what comes next.
Research is for informational purposes and does not constitute personalized investment advice.
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