● IndustryOct 31, 2026 · 01:388 sources
Reddit Shares Crash Nearly 30% as AI Search Slump Prompts Login Wall
From marketbrief.now
AI;DR
Reddit shares fell nearly 30% after the company warned that AI search features like Google's AI Overviews are reducing search engine referrals, with weekly search traffic dropping by over 1 million in October. The decline contributed to a quarterly user growth miss, with 130.3M daily active users against expectations of 133.4M, and a Q4 revenue forecast of $1.00B to $1.03B trailing analyst estimates of $1.05B. Reddit plans to test a login requirement for most site access in select international markets during Q4 to improve engagement and ad targeting.
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- SUPPORT@wallstengine“Daily active users were 130.3M versus 133.4M expected.”x.com
- SUPPORT@realnickmugalli“$RDDT -22% as CEO saying he gonna stop logged out users access which the market views as a huge huge tell”x.com
- SUPPORT@lutherlowe“If current trends persist, management warned that total DAU growth could decline by low double digit percentage points in Q4”x.com
- SUPPORT@rhyssullivan“Reddit is announcing a huge shift: It’s going to start requiring users to log in.”x.com
- SUPPORT@couch_investor“Gross margin 91.5%. Operating margin 29.2%.”x.com
- SUPPORT@realnickmugalli“Google now reads Reddit, writes the answer itself and the user never leaves the search page.”x.com