Google Expands Partnership with Reddit, Integrating AI to Enhance Search Capabilities
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Google expands Reddit partnership
March 17 (Reuters) - Alphabet's Google (GOOGL.O), opens new tab on Monday expanded its partnership with Reddit (RDDT.N), opens new tab amid concerns that the social media platform's user growth relies heavily on traffic from Google Search. Redburn Atlantic analyst James Cordwell initiated coverage on Reddit's stock with a "sell" rating, saying the company's growth in daily active users (DAUs) -- a key metric in determining traffic on a web-based platform -- is vulnerable to algorithm changes by Google. Google's algorithm change has already started to affect Reddit. It saw a sequential decline of 600,000 users in U.S.-based DAUs arriving on Reddit via Google search in the fourth quarter, Cordwell wrote in a note. Shares of Reddit were down 5.6% in afternoon trading on Monday. The expanded partnership now enables Reddit to use Google's Vertex AI - an AI development platform by Google Cloud that enables its users to build, deploy and scale machine learning models and AI applications - to enhance search on the Reddit platform. Mountain View, California-based Google said it will integrate Reddit content more effectively across its products, making it easier for users to find helpful information. Google will now have access to Reddit's API -- a set of rules and protocols that allows different software applications to communicate with each other -- for real-time, structured content, improving the accuracy and relevance of displayed information. Cordwell said growth of Reddit's organic users, the ones who log in on the platform to use it more than seeking an answer to a single question, has largely been unchanged over the past six months, signaling there has been little structural changes in the appeal of Reddit. Reporting by Rishi Kant in Bengaluru; Editing by Maju Samuel Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology
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Google expands Reddit partnership
The expanded partnership now enables Reddit to use Google's Vertex AI - an AI development platform by Google Cloud that enables its users to build, deploy and scale machine learning models and AI applications - to enhance search on the Reddit platform.Alphabet's Google on Monday expanded its partnership with Reddit amid concerns that the social media platform's user growth relies heavily on traffic from Google Search. Redburn Atlantic analyst James Cordwell initiated coverage on Reddit's stock with a "sell" rating, saying the company's growth in daily active users (DAUs) - a key metric in determining traffic on a web-based platform - is vulnerable to algorithm changes by Google. Google's algorithm change has already started to affect Reddit. It saw a sequential decline of 600,000 users in U.S.-based DAUs arriving on Reddit via Google search in the fourth quarter, Cordwell wrote in a note. Shares of Reddit were down 5.6% in afternoon trading on Monday. The expanded partnership now enables Reddit to use Google's Vertex AI - an AI development platform by Google Cloud that enables its users to build, deploy and scale machine learning models and AI applications - to enhance search on the Reddit platform. Mountain View, California-based Google said it will integrate Reddit content more effectively across its products, making it easier for users to find helpful information. Google will now have access to Reddit's API - a set of rules and protocols that allows different software applications to communicate with each other - for real-time, structured content, improving the accuracy and relevance of displayed information. Cordwell said growth of Reddit's organic users, the ones who log in on the platform to use it more than seeking an answer to a single question, has largely been unchanged over the past six months, signaling there has been little structural changes in the appeal of Reddit.
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Google expands Reddit partnership
(Reuters) - Alphabet's Google on Monday expanded its partnership with Reddit amid concerns that the social media platform's user growth relies heavily on traffic from Google Search. Redburn Atlantic analyst James Cordwell initiated coverage on Reddit's stock with a "sell" rating, saying the company's growth in daily active users (DAUs) -- a key metric in determining traffic on a web-based platform -- is vulnerable to algorithm changes by Google. Google's algorithm change has already started to affect Reddit. It saw a sequential decline of 600,000 users in U.S.-based DAUs arriving on Reddit via Google search in the fourth quarter, Cordwell wrote in a note. Shares of Reddit were down 5.6% in afternoon trading on Monday. The expanded partnership now enables Reddit to use Google's Vertex AI - an AI development platform by Google Cloud that enables its users to build, deploy and scale machine learning models and AI applications - to enhance search on the Reddit platform. Mountain View, California-based Google said it will integrate Reddit content more effectively across its products, making it easier for users to find helpful information. Google will now have access to Reddit's API -- a set of rules and protocols that allows different software applications to communicate with each other -- for real-time, structured content, improving the accuracy and relevance of displayed information. Cordwell said growth of Reddit's organic users, the ones who log in on the platform to use it more than seeking an answer to a single question, has largely been unchanged over the past six months, signaling there has been little structural changes in the appeal of Reddit. (Reporting by Rishi Kant in Bengaluru; Editing by Maju Samuel)
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Google and Reddit have expanded their partnership, with Reddit now using Google's Vertex AI to improve its search functionality. This move comes amid concerns about Reddit's user growth and its dependence on Google Search traffic.
Google and Reddit Expand Partnership
Google and Reddit have announced an expansion of their partnership, focusing on enhancing search capabilities and content integration. This development comes at a crucial time for Reddit, as concerns grow about its user growth and reliance on Google Search traffic
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.AI Integration for Enhanced Search
The expanded partnership enables Reddit to leverage Google's Vertex AI, an advanced AI development platform by Google Cloud. This integration aims to enhance search functionality on the Reddit platform, allowing users to build, deploy, and scale machine learning models and AI applications
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.Google has stated that it will more effectively integrate Reddit content across its products, making it easier for users to find helpful information. This move is expected to improve the accuracy and relevance of displayed information on both platforms
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.API Access and Real-time Content
As part of the partnership, Google will now have access to Reddit's API (Application Programming Interface). This access will provide Google with real-time, structured content from Reddit, potentially leading to more accurate and relevant search results
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.Impact on User Growth and Traffic
The partnership expansion comes amid concerns about Reddit's user growth and its dependence on Google Search for traffic. Redburn Atlantic analyst James Cordwell initiated coverage on Reddit's stock with a "sell" rating, citing vulnerability to Google's algorithm changes
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.Recent data suggests that Google's algorithm changes have already affected Reddit's user base. In the fourth quarter, there was a sequential decline of 600,000 users in U.S.-based Daily Active Users (DAUs) arriving on Reddit via Google search
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Market Response and User Engagement
Following the announcement, Reddit's shares experienced a 5.6% decline in afternoon trading on Monday. This market response reflects investor concerns about the platform's growth prospects and its ability to attract and retain users independently of Google Search
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.Cordwell noted that the growth of Reddit's organic users – those who log in to use the platform beyond seeking answers to single questions – has remained largely unchanged over the past six months. This stagnation suggests that there have been little structural changes in Reddit's appeal to users
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.Future Implications
The expanded partnership between Google and Reddit represents a significant development in the tech and social media landscape. While it may address some immediate concerns about Reddit's search capabilities and user engagement, questions remain about the long-term implications for both companies and the broader digital ecosystem
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