[FLASH] Reddit falls about 29%, its biggest one-day drop, after warning of accelerating Google referral declines
Reddit beat Q3 estimates, with revenue up 53% to $895M. It then said search referral traffic was down meaningfully and the decline accelerated late in the quarter. CEO Steve Huffman pointed to Google's AI Overviews and AI Mode answering queries directly. Reddit warned that daily active uniques could fall by a low double-digit percentage in Q4 and guided Q4 revenue to $1.0B-$1.03B, below consensus. Reuters reported the stock fell 29%, its biggest one-day decline, and that at least 11 brokerages cut their price targets. What to watch: Reddit's tests of a logged-in-only experience, and whether other publishers and review sites report similar referral losses.