# Reddit Shares Plunge 30% After Company Says Its Q3 Search Traffic Was “Down Meaningfully”

- URL: https://talkfuse.com/story/reddit-shares-plunge-30-after-company-says-its-q3-search-traffic-was-down-meaningfully/
- Published: 2026-10-30T18:16:49+00:00
- Updated: 2026-11-04T05:27:17+00:00
- Original publisher: Deadline
- Original article: https://deadline.com/2026/10/reddit-shares-plunge-q3-search-traffic-earnings-1237209538/
- Topics: Art, Business, Companies, Culture, Markets

## Key points

- Reddit shares dropped 30% after a warning about search traffic.
- Quarterly revenue rose 53% to $895 million.
- The company forecast weaker fourth-quarter revenue and user growth.

## Summary

Reddit’s shares fell 30% on Friday after the company reported that search referral traffic was “down meaningfully” in the third quarter and warned of weaker revenue and user growth ahead. The drop came despite results that exceeded analysts’ expectations, as investors reacted to the outlook and concern that changes in Google search and the growth of AI are disrupting how people reach online content.

Revenue for July to September rose 53% year on year to $895 million, while earnings per share increased to $1.40 from 80 cents. Daily users fell 2% in the quarter, and Reddit said they could decline by a low double-digit percentage from 130 million in the fourth quarter; its revenue forecast of $1 billion to $1.03 billion was below analysts’ $1.05 billion estimate. Reddit said search traffic fell fastest later in the quarter, particularly among logged-out users and web visitors, and argued that AI search does not replace the community and connection it offers.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.