Reddit shares plunge as Google's AI search squeezes traffic
Reddit shares tumbled 23% in premarket trading after the company warned that Google's AI search features could shrink its user base, with search referrals falling by more than 1 million on average each week in October. Reddit said daily active unique visitors could fall by a low double-digit percentage in the fourth quarter from about 130 million if the decline continues, and JPMorgan analysts pointed to Google's AI Overviews and AI Mode. It matters because it puts a hard number on a fear publishers have voiced for months: AI answers can divert the search traffic that ad-supported sites depend on.
SOURCES
- Hacker News (AI)2026-10-30 23:02