Reddit stock plunges 18% as search referrals drop over 1M weekly, CEO blames Google AI Overviews
daluoseo · x · 2026-10-30
Reddit shares fell about 18% after Q3 earnings: revenue and profit beat estimates, but Q4 guidance and user numbers disappointed, with daily active users at 130.3M versus 133.4M expected.
- Search referral traffic dropped by more than 1 million per week on average in October; management warns DAUs could fall by a low-double-digit percentage from the 130M base
- CEO Steve Huffman directly blamed Google's expanding AI Overviews and AI Mode
- Reddit will start testing login requirements for most content in select non-US markets in Q4
Related event: Reddit shares plunge 18% as it blames Google AI Overviews for traffic loss(3 posts)→
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