According to reports, Alphabet's Google expanded its partnership with Reddit amid concerns that the social media platform's user growth relies heavily on traffic from Google Search.

Redburn James Cordwell, an Atlantic analyst, began covering Reddit's stock with a "sell" rating, stating that Google's algorithm adjustments could affect the company's development in daily active users (DAUs), a crucial indicator of traffic on a web-based platform.

Reddit is already feeling the effects of Google's algorithm tweak. In the fourth quarter, there was a sequential drop of 600,000 U.S.-based DAUs who came to Reddit through Google searches.

Shares of Reddit were down 5.6 percent in afternoon trading.

Reddit may now improve search on the Reddit site by utilizing Google's Vertex AI, an AI development platform from Google Cloud that lets its users create, implement, and scale machine learning models and AI applications, thanks to the increased cooperation.

California's Mountain View to make it simpler for consumers to locate useful information, Google announced that it will more successfully incorporate Reddit content into all of its products.

Reddit's API, a collection of guidelines and procedures that let various software programs talk to one another, will now be available to Google for real-time, structured content, enhancing the precision and pertinence of the information that is shown.

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Cordwell says the growth of Reddit's organic users, the ones who log in on the platform to use it more than seek an answer to a single question, has largely been unchanged over the past six months, signaling there have been little structural changes in the appeal of Reddit.