By Todd Campbell
Publication Date: 2026-10-31 14:07:00
Reddit’s stock plunged about 28% on Friday, October 30, after the company said its U.S. audience is shrinking due to Google’s AI search features.
The sell-off came even though third-quarter revenue jumped 53% to $895 million. U.S. daily users fell to 50.7 million, down 2.5 million from the prior quarter, and CEO Steve Huffman said search referrals dropped by more than 1 million a week in October.
Shares, which closed at $129.60 on October 29, traded below their 52-week low of $119.27, changing hands at $91 as of 1 pm EDT. For investors who bought Reddit as an AI winner, the message is that the same technology is now taking away the traffic that feeds the business.
Reddit is tied deeply to Google
Reddit runs the discussion forums where users post questions, advice and opinions, and it makes money mainly from advertising.
Much of its audience arrives from Google searches, which is why search changes matter so much. The stock…
