Reddit falls 29% as Google AI cuts traffic

Reddit's shares fell 29.22% on the 30th of October 2026, their worst day since it listed in 2024, CNBC reported. The stock closed at 91.73 dollars, down from 129.60, according to 24/7 Wall St.

Reddit reported its third quarter results after the market closed on the 29th of October. Visits sent by search engines were "down meaningfully," its shareholder letter said.

Huffman ties the drop to Google's AI answers in search

Traffic sent from Google went "down meaningfully in this quarter" due to AI, chief Steve Huffman told CNBC. CNBC tied it to Google's AI Overview, the AI summary at the top of a search.

In the letter, Huffman wrote that web search is becoming "an AI-powered destination itself."

Reddit warns daily users could fall by a low double digit share

In October, search sent Reddit over 1 million fewer visits a week, the letter said. If that holds, daily users could fall by "a low-double-digit percentage" from 130 million.

A 10% fall would mean about 13 million fewer daily users, by our arithmetic.

Below we break down the quarter: sales up 53%, outlook below forecasts

Revenue rose 53% from a year earlier to 895 million dollars, Reddit's results release of the 29th of October said. Net income rose 74% to 283 million dollars.

Reddit expects fourth quarter revenue of 1.00 to 1.03 billion dollars, the release said. Analysts had expected 1.05 billion, CNBC reported.

The middle of that range is about 3% below what analysts expected, by our arithmetic. US daily users fell 2% to 50.7 million, the release said.

Reddit will test a login requirement outside the United States

Reddit will test a site that needs a login in some markets outside the US this quarter, the letter said. Logged-in users are its most valuable, it said.

Several analysts downgraded the stock, CNBC reported. Citizens said the "search changes highlight the problem with selling content to Google."

Key facts

Shares fell 29.22% on the 30th of October 2026, the worst day since the 2024 listing.

Third quarter revenue 895 million dollars, up 53%.

Fourth quarter outlook 1.00 to 1.03 billion dollars, below the 1.05 billion analysts expected.