DECRYPT · 2026-10-30 19:31 UTC

Reddit Stock Plunges 30% as Google's AI Search Hits Traffic and User Growth

Reddit stock fell 30.44% after CEO warned that Google's AI search features are reducing referral traffic and could shrink user growth. Q3 results showed strong revenue growth (53% YoY to $895M) and earnings ($1.40 per share), but Q4 guidance disappointed and daily active users came in below expectations at 130.3 million. Google's AI Overviews and AI Mode allow users to get answers from Reddit discussions without clicking through to the site, with search referrals declining over one million weekly in October.

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