TMTB EOD Wrap

QQQs +56bps continue to grind up. Yields rose 6-7bps across the curve as 10 year crossed 4.5% - something to watch closely. Fed expects continue to price in 2 cuts per year. Not much on the macro front today (we like it like that!) so let’s get straight to the recap…

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Internet

• RDDT +10% / GOOGL +3.5% as GOOGL launched AI mode on the homepage.

  

  Strength attributed to this post, which said AI overviews have grown by 116% since the March core update:

When it comes to “AI overview market share”, Reddit is far and away the most dominant player, showing up for 5.5% of all AI overview queries.

This was not the case before the March Core Update.

In fact, on March 12th, Reddit actually placed 6th in terms of AI overview market share, beneath the likes of Quora, Healthline, and Wikipedia.

Reddit’s “AI overview market share” has shot up by 4.2% since the March Core Update, which means it has claimed millions of new domain citations in AI overviews.

The RDDT data is interesting as should have affected April #s, but mgmt still called out weak DAU trends in April so not sure what to make of it. Regardless, it’s a datapoint we didn’t have before and makes me less excited about the short.

A lot of GOOGL covering going on as well into I/O Conference next week. Some good discussion in TMTB chat today:

On GOOGL, we still think it’s a decent funding short. We don’t think search data has improved in May and more likely than not get weaker 3p updates in the next couple of weeks.