• Reddit has been rated a 'sell' by analysts at Redburn Atlantic, who cite significant risks associated with its reliance on Google for user growth. The analysts argue that the surge in user numbers, which nearly doubled in size over 18 months, is largely attributable to favorable changes in Google's search algorithm rather than a genuine increase in user engagement. They warn that this growth is misleading and that Reddit's core user base, particularly logged-in users, has not seen similar growth, indicating potential stagnation ahead.

• The analysts predict that Reddit's user growth will stall in 2025, which could adversely affect its revenue generation capabilities. They emphasize that the platform's current offerings for advertisers are insufficient compared to more advanced competitors. The recent decline in daily active users from Google search, which accounted for up to 50% of Reddit's traffic, signals a troubling trend that could lead to further financial challenges if Google alters its algorithm again.