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Reddit stock plunges 29% after weak outlook

Original: 📉 Reddit stock plunges 29% after weak outlook, wrapping its worst day ever ｢ The report comes as the company has seen a

Reddit shares fell 29%, the company's worst single day as a public company, after it issued a weaker-than-expected outlook. CEO Steve Huffman told CNBC that search-referral traffic has shifted as Google's AI Overview reduces clicks to outside sites, raising concerns that AI-generated search results are hurting Reddit's traffic growth and future revenue prospects.

Why now: Investors are reacting sharply to Reddit's weak guidance and fears that Google's AI search summaries are cutting the referral traffic that drives its growth

RedditSteve HuffmanGoogleCNBC

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• 📉 Reddit stock plunges 29% after weak outlook, wrapping its worst day ever ｢ The report comes as the company has seen a shift in its search referral traffic with the rise of Google’s AI Overview. In an interview with CNBC, Reddit CEO Steve Huffman said search-referral traffic… · jbz@indieweb.social · 5

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