Reddit Stock Crashed 29%: Is Google AI Coming for More Stocks?

Reddit shares fell 29% to $91.73 on Friday, the company’s worst trading day, wiping more than $7 billion from its market value as it warned that daily users could drop by a low double-digit percentage this quarter, or at least 13 million people a day. Chief Executive Steve Huffman said Google’s AI summaries and chatbot-style AI Mode answer many queries directly, reducing visits to Reddit even as Google continues to crawl the site; searches sent Reddit over one million fewer weekly visits in October. The decline came despite third-quarter revenue rising 53% to $895 million. Other firms, including People Inc., publisher of People magazine, Tripadvisor and Pinterest, have also reported pressure on Google-referred traffic.