Reddit, stock
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Reddit announces huge shift
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Automated ad products are converting user intent into higher revenue, with click volume up over 50% and conversions more than tripling.
The For You feed combines posts from communities users have joined with recommendations tailored to their interests.
A day after Alphabet lost $500 billion in market value due to a slowdown at Google, Reddit stock plunged 30% Friday after the company said its search traffic was “down meaningfully” in the third quarter.
Reddit is reporting a 53 percent year-over-year total revenue increase.
Reddit beat earnings expectations by a wide margin, yet its stock cratered in morning trading as the CEO revealed a threat that no quarterly report can easily fix. The culprit sits inside Google, and Reddit's proposed solution could cost it millions of casual visitors.
Reddit will test a login requirement in select markets outside the US after Google's AI search cut referrals by more than 1 million a week and US users fell 2%.
Reddit CEO Steve Huffman says Google AI features cut over 1 million weekly referrals as US users fell 2%, despite 53% revenue growth.
Reddit's massive single-day drop barely touched most 401(k) accounts, but investors in one popular thematic fund absorbed a hit that index holders never saw coming.
Reddit stock fell 23% as Google AI Overviews cut search referrals, weak Q4 guidance overshadowed a strong earnings beat.
In a company blog post, Reddit announced the rollout of a new "For You" feed for users, which appears on the Reddit homepage. Reddit says this will start popping up on users' feeds globally in the coming weeks, and it's already live for many users in the United States.
