Reddit shares plunge as Google AI search hits traffic
In short
Reddit shares fell 23% after the company said Google’s AI search tools are hurting traffic from search results. Reddit also warned that daily active users could fall.
This matters because less referral traffic could slow Reddit’s growth. The report also says Pinterest fell after a weaker outlook, but the exact damage is not stated.
What the reporting says
Reddit shares plunged 23% after the company warned that Google’s AI-powered search features were hurting referral traffic, according to an Economic Times Markets summary. The same summary says Reddit warned this could lead to a decline in daily active users, while Pinterest also fell after a weaker revenue outlook tied to pressure on European cross-border sellers. The immediate business impact is lower traffic and growth expectations, but the full effect is not yet known.
Why it matters
Reddit’s stock drop followed a warning that Google’s AI-powered search features were reducing referral traffic and could hurt daily active users. The summary also says Pinterest fell after issuing a weaker revenue outlook, with pressure on European cross-border sellers weighing on its business. The source does not quantify Reddit’s user loss or give a separate timeline for Pinterest’s slowdown.