Reddit remains a buy despite Google Search changes, with strong revenue and user growth.

Reddit's stock is recommended as a buy despite concerns about Google's Search overhaul announced at I/O 2026. Reddit's AI-powered Search and strong ad revenue growth led to a 69% increase in Q1 FY26 revenue and a 44% rise in average revenue per user year-over-year. Although Google Search accounts for 40-50% of Reddit's traffic, most users are low-value 'logged-out' users, minimizing monetization risks from potential traffic drops. Analysts expect 46.5% revenue growth and 89% EPS growth in FY26, with a forward price-to-earnings ratio of 20.9 and a 53% upside to the average price target, making Reddit an attractive investment opportunity.