Reddit Stock Falls 29% as Google AI Raises Risks for Other Companies

Reddit shares fell 29% to $91.73 on Friday, erasing more than $7 billion in market value after the company warned daily users could decline by a low double-digit percentage this quarter as Google’s AI answers reduce search referrals. CEO Steve Huffman said Google still crawled Reddit heavily but searches sent it more than 1 million fewer visits a week in October, according to BeInCrypto; he also said AI Mode does not drive traffic. Revenue rose 53% to $895 million. People Inc. reported a 40% year-over-year drop in Google search traffic, Tripadvisor blamed AI Overviews for fewer visitors, and Pinterest said its search traffic was outside its control.