Reddit Stock Drops 36% After CEO Confirms Google Search Traffic Decline From AI Shift
OnlineInference · x · 2026-11-03
Reddit CEO Steve Huffman told CNBC that the company's search-referral traffic from Google went "down meaningfully in this quarter" due to the shift to AI Mode and AI Overviews. Reddit's stock fell over 33%-36% in the week following the news.
Huffman said past Google algorithm changes would "come and go," but AI represents a lasting structural shift: "that relationship between Google and the rest of the internet is evolving." Reddit will focus on core users who visit directly and push more visitors to log in. SEO observers note this was widely expected as AI search reshapes traffic patterns.
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