Reddit stock falls 29% as Google AI Mode reduces traffic, CEO says
Reddit’s shares dropped 29% to $91.73 on Friday, wiping more than $7 billion off its market value, after Google’s new AI‑driven “AI Mode” began answering many queries directly and cutting click‑through traffic. CEO Steve Huffman said the change cut over 1 million weekly visits in October and warned daily active users could fall by a low double‑digit percentage this quarter, roughly 13 million…
Key points
- Reddit stock fell 29% to $91.73, costing the company over $7 billion after Google AI Mode cut traffic.
- Google AI Mode reduced Reddit’s weekly visits by over 1 million and could lower daily users by at least 13 million.
- Google and OpenAI reportedly pay about $60 million and $70 million a year to license Reddit content.
The slowdown mirrors broader publisher pain: People Inc. saw a 40% drop in Google search traffic over the past year, Tripadvisor’s CEO blamed AI overviews for fewer visitors, and Pinterest’s shares fell nearly 8% after an earnings miss. Chegg’s share price has collapsed from $113 in 2021 to about $1 amid a lawsuit over Google’s AI summaries. Google and OpenAI reportedly pay about $60 million and $70 million annually to license Reddit content, and the licensing deal is nearing expiry. Reddit now trades at 19 times expected earnings, versus 7.5 for Snap, as investors gauge whether loyal users can offset the loss of Google clicks.
The story so far
2 episodes →- Reddit stock falls 29% as Google AI Mode reduces traffic, CEO saysthis story
Reddit Stock Crashed 29%: Is Google AI Coming for More Stocks?
finance.yahoo.com · 1 November 2026
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