Reddit Stock Plunges 30% as Google's AI Search Hits Traffic and User Growth

Reddit shares fell 44% this week after CEO Steve Huffman warned that Google’s AI-powered search features are cutting the referral traffic the platform receives. The company also reported weaker user growth and gave disappointing fourth-quarter guidance, which added to investor concerns. Huffman is Reddit’s chief executive, and Google operates the AI search features cited as reducing referrals sent to Reddit. The warning and the other results together deepened investor concern about Reddit’s traffic and growth.