Reddit shares fell 30.44% to $90.15 after CEO Steve Huffman warned that falling Google search referrals could shrink its user base. The stock was down 44% for the week. Huffman said referrals fell by more than 1 million a week on average in October; if that pace continues, he said, daily active users could fall by a low double-digit percentage in the fourth quarter. He pointed to Google’s AI search features, but the projected user decline has not occurred.
Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, below analysts’ roughly $1.05 billion estimate, despite reporting 53% year-over-year revenue growth in the third quarter. It reported 130.3 million daily active unique visitors, up 12% from a year earlier but below the roughly 134 million analysts expected.
