Reddit crashes 30% after earnings as CEO says AI Mode is killing Google search referrals
2C_ornot2C · x · 2026-11-02
Reddit's stock collapsed 30% in a single day after earnings, and is down 44% in two weeks. On the call, the CEO said AI is killing Google search: users no longer click through to Reddit from Google — they get answers directly from Google's AI Mode, which Google's own results confirm is cannibalizing its search business.
Quoted replies argue this goes far beyond Reddit: millions of companies and publishers depend on search traffic. Commenters draw historical parallels — Yahoo outsourcing search to a tiny startup called Google, IBM outsourcing its OS to Bill Gates, Toys R Us handing its shoppers to Amazon — platforms that fed their core traffic to a rising layer and dug their own graves. Screenshots also cite Reddit's earlier positioning, with the COO calling Reddit comments 'foundational' to AI training and its OpenAI data licensing deal, underscoring the irony of Reddit going from AI data goldmine to AI traffic casualty.
Related event: Reddit Plunges 30% After Earnings, CEO Blames AI Search(2 posts)→
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