Reddit shares fall as Google AI search weighs on referral traffic

AI · First reported 29 Oct, 22:19 · Updated 22:34

Image: Wikimedia Commons · NASA Johnson Space Center / Jonny Kim · Public domain

Reddit warned that Google’s AI-powered search is reducing clicks from search results and could put pressure on its audience. Its shares fell sharply, while the company also extended its cloud services agreement with Google through 2029.

Reddit said declining search referrals could reduce its daily active unique visitors by a low double-digit percentage in the fourth quarter if the trend continues.
Reddit shares fell 29 per cent on Friday, their biggest single-day drop, while Pinterest shares fell nearly 8 per cent after its results and holiday-quarter outlook missed expectations.
Reddit said it extended its cloud services agreement with Google through 2029, committing to spend $580 million over three years.

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Key facts

Reddit share move: Down 29 per cent on Friday.
Potential Q4 visitor decline: A low double-digit percentage if referral traffic continues to decline.
Google cloud agreement: Extended through 2029; Reddit committed to spend $580 million over three years.
Pinterest share move: Down nearly 8 per cent after its third-quarter results and holiday-quarter revenue forecast missed analysts’ estimates.