Reddit stock plunges 29.2% as Google AI cuts US traffic
Reddit shares fell 29.2% to $91.73 after Q3 results revealed a meaningful decline in US search traffic caused by Google AI search. While the company reported 53% revenue growth, the stock plummeted due to shrinking US user numbers and Q4 guidance that missed estimates. In response to the loss of over 1 million weekly referrals, Reddit is transitioning to a logged-in-only experience to force mandatory logins for users. This shift specifically targets the drop in traffic among logged-out users.
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- ✓ Reddit stock fell 29.2% to $91.73.
- ✓ Google AI search reduced Reddit traffic in the US.
- ✓ Reddit reported 53% revenue growth.
- ✓ Reddit is moving to a logged-in-only experience.
What changed
Reddit is implementing a mandatory login requirement to counter a loss of over 1 million weekly search referrals from Google.
Live updates
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Reddit stock drops 29.2% as Google AI search reduces US traffic
Reddit shares fell 29.2% to $91.73 after Q3 results revealed a meaningful decline in US search traffic caused by Google AI search. While the company reported 53% revenue growth, the stock plummeted due to shrinking US user numbers and Q4 guidance that missed estimates. In response to the loss of over 1 million weekly referrals, Reddit is transitioning to a logged-in-only experience to force mandatory logins for users. This shift specifically targets the drop in traffic among logged-out users.
Why it matters
Google's AI search integration changes how users find information, often providing answers directly rather than linking to external sites. This creates a systemic risk for platforms like Reddit that rely on search referrals for user acquisition. The move to mandatory logins is a strategic attempt to retain users and collect data amidst this traffic decline.
What is confirmed
- Reddit stock fell 29.2% to $91.73.
- Google AI search reduced Reddit traffic in the US.
- Reddit reported 53% revenue growth.
- Reddit is moving to a logged-in-only experience.
- Search referrals dropped by more than 1 million per week.
- Reddit's Q4 guidance missed estimates.
What to watch next
- User growth metrics following the implementation of mandatory logins
- Updated Q4 financial results
- Further changes to Google AI search referral behavior
confidence 95%Sources used for this update (16)
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