Reddit, a US-based social media platform, saw its shares fall 29.22% on October 30 after it forecast fourth-quarter sales of US$1 billion to US$1.03 billion, below analysts’ estimate of US$1.05 billion.

The decline came even as the company’s third-quarter earnings and revenue beat expectations, marking the stock’s worst trading day since Reddit went public in 2024.

CEO Steve Huffman said Google search referrals had fallen notably due to AI. Reddit also plans to test requiring users to log in to access content.

The warning adds to publishers’ broader concerns over Google’s AI search features. One analysis reported 58% fewer clicks to publisher sites when AI Overviews appeared instead of traditional search results.

A broader shift to login-gated pages could also hurt discoverability. Google says pages blocked by login requirements cannot be fetched or evaluated normally for crawling and indexing.

🔗 Source: CNBC

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