Reddit's second-quarter earnings report, released on July 30, showed an earnings per share beat of 29%, revenue growth of 61%, and a tripling of profits. However, the company's stock price fell by over 20% after the earnings release, with a cumulative drop of 13.7% last week and a year-to-date decline of 32.7%, due to CEO Steve Huffman mentioning "unstable search recommendations" in his letter to shareholders. Despite this, the stock rebounded nearly 10% on August 3, closing at approximately $154.71. Since then, retail investors on the Reddit platform have shown divided opinions on the stock, with some finding its valuation attractive, while others remain skeptical about the potential risks of AI traffic and Google search recommendations.