Reddit’s 30% single-day stock crash wasn’t just a bad earnings reaction. It was the moment the bill came due on a decade of relying on Google—and on alienating the users who made the platform valuable in the first place.
The numbers are brutal. Reddit shares fell 30% on Friday, October 30, 2026, the worst trading day since the company went public in 2024, after management issued weak fourth-quarter guidance. But the real damage was buried in the earnings call. CEO Steve Huffman admitted that Google search referrals had dropped by more than one million visits per week on average in October alone. The cause, he said, was unambiguous: Google’s AI Overviews and AI Mode.
“AI Mode does not drive traffic. Not for us, and not to anybody, as far as I know. It used to be a traffic driver, now it’s not.”
That is the entire business model of the open web collapsing in a single sentence. People still want Reddit’s content—it remains a top search term on Google—but Google no longer sends them there. Users get their answers summarized inside the search results and never click through. Reddit’s daily active users could fall by a low double-digit percentage in the fourth quarter if the trend continues. The company is now scrambling to force logins and become a “direct, sticky destination,” but that is a defensive retreat, not a growth strategy.
And this is not just Reddit’s problem. Publisher referral traffic from Google fell 43% year-over-year for large outlets and nearly 60% for small ones between 2025 and 2026. Visits to top news sites plummeted from over 70 million a month in July 2024 to just over 47 million in July 2026. Even Google is hurting: its AI Mode ads monetize worse than traditional search, and Alphabet shed more than $500 billion in market value in a single day when that became clear.
Reddit’s decline was accelerated by its own hand—years of aggressive moderation, mass bans over combat footage and political speech, and a creeping hostility toward the users who built its communities. But the killing blow came from the outside. When a platform depends on a single funnel for discovery, and the owner of that funnel decides to keep the answers for itself, there is no plan B.
Reddit is not dying because people stopped caring about Reddit. It is dying because Google stopped sending them. The same epitaph is being written, quietly, for millions of other sites that built their futures on borrowed traffic.
You love to see it
I would argue that forcing people to log in to view content was more effective deterrence than Google not sending people there.
Yeah that was stupid. If people have to log into view content then it doesn’t matter what Google is doing.
I don’t think we’re seeing the effects of that particular nonsense yet, it’s relatively recent.
Expect the numbers to have fallen even more next time they report them.
So, about when they’re filing for a bail-out, then. 🤮
“I like popcorn.”
-Some fucking Reddit admin once upon a time.
I think it really started with the API bullshit a few years back. Reddit ran ads and they made money. Then they got greedy and added more. People made apps that bypassed the ads. Reddit lost a little money, so they ran even more ads. This drove more people to the third-party apps. What Reddit should have done was limited their API to so many calls a day so that third-party apps would only be able to do so much. Then let them either show ads to get more views/calls to the API, or let the user pay a very low fee. Instead what they did was, accused a popular developer of extortion. They did not count on the guy recording the call and posting it online, which is not really something a professional does. But this developer wasn’t a great guy either, though he made a good app. He was charging a monthly fee to use his app, and he wasn’t giving Reddit any of that money. So Reddit was not in a good place. Had cooler heads prevailed, maybe there would have been a better outcome. People would be either dealing with ads, or paying a couple bucks a month to get rid of them.
Paying Reddit would have only gotten rid of the ads, though. It would not have shielded you at all from toxic users and especially not from toxic moderators. That was another problem they would have had to address if they didn’t screw themselves over their greed.
They didn’t just remove pro-Palestine users. They went after anyone who spoke out about the Trump-Epstein class. I got a permanent ban just for saying people who harm children should face longer prison sentences. I didn’t even name Trump or Epstein. So by requiring users to be signed in, they can’t even make money off me when I click through from a Google search. I don’t mind not being able to vote/comment because I’ve found a home on Lemmy/dbzer0, but Reddit is still a valuable resource. By banning anyone who disagrees with the way the politicians the admins support, and then by saying you have to be logged in to see the site, they’re shooting themselves in the foot and this graph isn’t surprising. And sure, they’ll blame Biden and the left, but will they invite us back? Will they overturn the bans? Will they open their API up to third-party apps at a reasonable rate? Will they even begin to address their toxic user base and moderation system? I fear that ship has sailed.
I used to moderate a subredded and all I ever did was ban one user who kept posting really badly produced long and rambling flat Earth videos. It was funny for a while, but he posted them all of the time.
I think other than that there was a automatic restriction where you couldn’t post until you had x amount of karma points, which took care of like 99% of bots. That was pretty much the extent to the moderation that was required anything else would have been excessive.
For the no-ads-in-apps problem, Reddit could have just done something to limit third-party apps to users who subscribed to Reddit Premium, since they don’t get ads anyway. Making the apps pay instead was completely meant to fuck over the apps, not recover the ad revenue.
And Reddit was supposed massively overcharging for the lost ad revenue:
[Apollo developer Christian] Selig links to a CNBC report from 2019 that estimated Reddit earns 30 cents a year per user and says Reddit’s API pricing would work out to about $2.50 per user per month or $30 a year.
Selig estimated it would cost $20 million per year to keep Apollo running, and while Apollo did have an optional subscription, he almost certainly wasn’t making that kind of money.
Post API bullshit Reddit is markedly different as well. It’s noticeably dumber, with a much more similar feel at times to Facebook comments and YouTube comments than what it had been known for in the past. The ‘spark’ that made Reddit worth visiting is now really only found on the much, much smaller subs and even there it’s growing more rare by the day.
Don’t use reddit directly. Don’t give fascist enablers a single cent.
Rather apropos username, and I’m here for it! Clock those scurrying critters, hoarding like it’ll save them from the order of things, and clue their comeuppances to those hidey-holes. ☝🏼 Wise, vigilant hawk type person. 😃
Everything eventually becomes AOL.
“oh no, the AI is actually bad for us noooooo. Pls don’t scrape anymore I can’t handle it noooo”
- jiz (spez nickname, derogatory)
The user count isn’t helped by my own strategy.
I have Firefox configured to an inch of its life to be just functional enough for Reddit and a handful of other sites. This is on purpose, to limit my exposure vector while still letting the sites be useful for me.
I do most of my research and non-site-specific surfing on Waterfox, which is locked down even further.
That way, I cannot accidentally reach a Reddit link on an organic search.
Now granted, Reddit will still “die” for me on the day they turn off Old Reddit, as I will absolutely refuse to use New Reddit. But hey.
I always hated bots on reddit, but that was more like a managable infection. Then Reddit added Persona identity verification for accessing NSFW content. That was fatal.
The truth will always break free eventually.
So much censorship on that godforsaken platform.
