Oct 30 (Reuters) - Reddit shares tumbled 29% on Friday, marking their biggest single-day drop and hitting their lowest level in over a year, after the company warned that Google’s AI-powered search was hurting referral traffic and could shrink its user base.
The online discussion platform still appears in Google search results but is attracting fewer clicks, as users increasingly rely on the tech giant’s AI tools for direct answers.
“When more than a million search referrals a week disappear because Google’s AI answers the question itself, investors are no longer looking just at the next three or four months, but at how much of Reddit’s audience it will really own in the years ahead,” said Vitor Madeira, senior market specialist at Capital.com.
Reddit warned that its daily active unique visitors could fall by a low double-digit percentage in the fourth quarter if referral traffic kept declining.
If current losses hold, Reddit is set to lose more than $7 billion in market value and Pinterest about $900 million. The two stocks have fallen about 44% and 23%, respectively, this year through their last close.
Reddit has a 12-month forward price-to-earnings ratio of 19.03, compared with Snap’s 7.53 and Pinterest’s 8.48, according to LSEG data.
Separately, Reddit on Friday said it has extended its cloud services agreement with Google through 2029, committing to spend $580 million over three years.
At least 11 brokerages cut their price targets on Reddit, and at least 13 did so on Pinterest.
Good. Let it burn to the ground
Sounds like they’re moving toward a “logged-off experience”.
Better not recover.
Still wildly overvalued especially since it’s all but guaranteed Spez will continue choking it to death with his greedy little handlets.
I haven’t used Reddit with an account for months because they’re dead set on attaining my ID just to give me access to my damn account
I found that, if they’re asking for ID, you’re about to get banned. They do that to make ban evading harder.
Good, only 70% more to go until we can all tell Spez to gfy one last time!
Alright is there anyone here voluntarily? Or did we all just end up here because we kept getting banned?
For me it became too much. I got so tired of the masked adverts. The tell me about what place to buy this bullshit. The last straw was realizing that I started to doom scroll (cooking videos) on facebook instead of using reddit. Getting down voted with no interaction is stupid. There’s no secret santa, little to no interaction. It’s the biggest ghost town. So yeah I’m here voluntarily, came here all the way from digg.
My old accounts never got banned (I think I have three still usable ones). I have one that was newer that was shadowbanned, but I never really posted anything (it was shadowbanned right out the gate from what I could tell because I used a VPN and a temp e-mail - remember the time you didn’t need an e-mail?!).
I came here simply because I want a better alternative (and to get away from fascist shitheads). Unfortunately, there’s really no engagement for most things here I used reddit for, but where there is, it’s mostly a nicer community (because it’s much smaller on here, plus less power tripping reddit mods).
Also, I can’t use new reddit. It’s awful. I tried again yesterday, and it sucked. The death of old reddit was always going to force me to jump ship. Although I mostly used it for lurking these days with my shadowbanned account, or through websearches for very specific things (old TV episode discussions for instance). Very rarely I log in to an unbanned account and answer a question in a niche sub of mine.
I never got banned. I just hated that they killed out old.reddit for logged out users since I lurked most of the time and can’t stand the new UI.
And I refused to ever install or use their app. I like that the fediverse has a lot of third party apps like Summit which I’m using.
When I use reddit these days I visit it through a redlib instance like https://redlib.catsarch.com/ or https://redlib.blueberry.reallyaweso.me/
I could still go there if I wanted to play footsie with fascists, bots, and incels.
I left because they killed the app that I paid for and I’m stubborn AF.
Funny how fake hype and bad decisions do that.
The business was never profitable because of any decisions made by anyone in charge, it was profitable because millions of people decided it should be the place to hang out.
And that’s only because of terrible decisions made by the people in charge of Digg
The cycle repeats
GOOD
love it. Hopefully it continues.
Nobody to blame BUT REDDIT! Got to the point that their bots banned you while you were even typing your comment before posting………so PC that they became useless!
It didn’t even have to be politically correct. I made a celeb gossip joke about Kanye West and got permabanned for “insighting violence” like what?? Did they think Kanye was reading my comments and taking them as personal advice?
I got no warning permabanned from a sub I was active in daily for calling Tim Walz a “spineless fuck” for saying that he would never seek office again because he was afraid of Trump / his supporters.
On that topic I agree his debate really showed it was all an act
You cant post in this community until you post somewhere else for a week and get x amount of karma.
In every subreddit of any interest or else so niche you can gather the necessary Karma
Nice, a few more dumps and we’ll be below the initial price
Feel like they are making stuff up. People are not clicking cause reddit suck. They just messed up old reddit, standard reddit is slow and answers are more than offten not there. When you enshitify; engagement drops.
Gosh. You mean making it harder and harder to access their platform without giving up anonymity is hurting their business model? Well jack me off and call me Betty. When will it all make sense.
You’re already paying for the hour Betty. "It’s $10 for a BJ, $12 for an HJ, $15 for a ZJ.
If you have to ask big man, you can’t afford it
