Oct 30 (Reuters) - Reddit shares tumbled 29% on Friday, marking their biggest single-day drop and hitting their lowest level in over a year, after the company warned that Google’s AI-powered search was hurting referral traffic and could shrink its user base.
The online discussion platform still appears in Google search results but is attracting fewer clicks, as users increasingly rely on the tech giant’s AI tools for direct answers.
“When more than a million search referrals a week disappear because Google’s AI answers the question itself, investors are no longer looking just at the next three or four months, but at how much of Reddit’s audience it will really own in the years ahead,” said Vitor Madeira, senior market specialist at Capital.com.
Reddit warned that its daily active unique visitors could fall by a low double-digit percentage in the fourth quarter if referral traffic kept declining.
If current losses hold, Reddit is set to lose more than $7 billion in market value and Pinterest about $900 million. The two stocks have fallen about 44% and 23%, respectively, this year through their last close.
Reddit has a 12-month forward price-to-earnings ratio of 19.03, compared with Snap’s 7.53 and Pinterest’s 8.48, according to LSEG data.
Separately, Reddit on Friday said it has extended its cloud services agreement with Google through 2029, committing to spend $580 million over three years.
At least 11 brokerages cut their price targets on Reddit, and at least 13 did so on Pinterest.
Good. Fuck spez.
Good. Let it burn to the ground
Gosh. You mean making it harder and harder to access their platform without giving up anonymity is hurting their business model? Well jack me off and call me Betty. When will it all make sense.
You’re already paying for the hour Betty. "It’s $10 for a BJ, $12 for an HJ, $15 for a ZJ.
If you have to ask big man, you can’t afford it
Reddit’s failure was inevitable; once capital exerts excessive control, it’s time for people to leave. Everyone has surely had the infuriating experience of being bombarded by trashy ads on Reddit often with no human customer support available to address complaints. It has become a hub overrun by bots and scams; when you enter a subreddit, almost everything you see is just bots.
They also don’t let people lurk anymore.
We really do need to get back to a tech landscape where evil ceos are shunned and their products not used. We have tolerated the spez, musk, thiel, zuckerburg, ellison, bankman-fried, elizabeth holmes, Kalanich (uber), baszuskis (roblox) types for way too long. They are all a bunch of mega pricks and their companies should pay a penalty for their being openly evil.
“When more than a million search referrals a week disappear because Google’s AI answers the question itself,
investors are no longer looking just at the next three or four months, but at how much of Reddit’s audience it will really own in the years ahead,”
said Vitor Madeira, senior market specialist at Capital.com.
Personally I am glad investors are worried they wont own enough users.
Also, didn’t Reddit close up and start charging for their API because of this exact issue and related AI stuff? Spez is now mad that there are effects from what they implemented?
I mean, what else were they expecting when they exchanged money for API access to a search engine that explicitly pushed their AI “answer” feature? I’m bewildered at how so many companies complain about not being able to see the consequences of their own actions that were told to their face would happen.
At this point there is no way this isn’t intentional from the start.
Reddit used to be a great free to use information source and community creation tool.
It was counter to the commoditization of both.
It was inevitable that capital interests would destroy it.
I haven’t used Reddit with an account for months because they’re dead set on attaining my ID just to give me access to my damn account
I found that, if they’re asking for ID, you’re about to get banned. They do that to make ban evading harder.
Fuck you u/spez. Fucking usurper.
Good, only 70% more to go until we can all tell Spez to gfy one last time!
Good.
I enjoyed pre-COVID Reddit, where you could find all political stripes and religions, a virtual “melting pot”.
Today? It’s like Lemmy but with advertising. So much more homogeneous, and the moderators are deranged. Let them rule their dying empire with furry fists, have at it, it’s yours now
Reminded now, right before I left Reddit I was banned from r/pics for being a member somewhere that they don’t approve of, I can no longer recall which sub but it was lightly Republican flavored (my favorite political adversaries).
Why would they care? How would they know what the sub was intolerable without joining themselves? Why didn’t they ban themselves then? They were despoiled, like me.
Senseless. I haven’t visited since the login requirement, piss off
It’s like Lemmy but with advertising.
Especially compared to https://old.lemmy.world/
Today? It’s like Lemmy but with advertising. So much more homogeneous
Might have been a while since you visited it then, it’s getting increasingly absurdly right wing - mostly bots I’m guessing. Pretty much all of the main /r/all subs
Yep. Recently there was a post about the UK looking at raising the minimum wage to about £13.20 (17.50USD) an hour. On reddit it was endless comments complaining that minimum wage is too high. Most unhinged take I saw was that this will make the cost of living worse.
Yeah I haven’t been there for a couple of years. When I left it was a Democratic stronghold that had banned The Donald. Not as hard left as Lemmy, but close.
My ideal place would be “neutral” with all flavors, but I haven’t found anything like old Reddit yet, so I am taking a sabbatical here for as long as I am tolerated (probably another week)
Your posts here get banned for anti muslim hatred and terroristic zionism. Hopefully it wont take a whole week for a siteban for people like you.
The moderators on Reddit have been a pain for a long time. Here was always so much drama
Private profit from community kind of sucks. Thus, reddit sucks. Fuck them.
Too many people block ads on reddit -> block the api -> people use google search and vpns -> block search and vpns unless logged in -> people use ai instead of search to find reddit answers because reddit blocks everything –> block access even harder -> complain no one visits the site anymore -> [we are here]
also thier reddit app and thier new REDDIT UI on browser is very non-intuitive to use.
Only thing left to block are logins.
I honestly don’t know anyone that does anymore. I tried the bs for about 5 sec before I get prompted for ads for their app.
Not sure how that pops up with origin
I still log in every now and then on a browser to read the sports subs because lemmy sucks for that, but I refuse to install that cancer of an app.
I agree Lemmy sucks for sports subs, but I refuse to log in to Reddit. Because I refuse to login it has basically become unusable – so I don’t use it.
You forgot banning your userbase left and right.
Or shadowban you if you ever comment anything more divisive than “This content is great!”
Reddit used to be a place for discussion a long time ago, now it’s a place for bots and idiots to practice the form of discussion without ever holding any substance
Reddit used to be a place for discussion a long time ago, now it’s a place for bots and idiots to practice the form of discussion without ever holding any substance
This describes 90% (or more) of the modern internet.
Allowing stupid people to form large groups was a mistake. Sorry George. I know you warned us.
and more to the point multiple accounts per user, that likely wouldve interacted more subs than with 1 account.
Yep they hand out auto suspends and bans like it’s free candy.
AI bans, more like sudden acute “runs”
I once got permabanned for harassment because I called a dude a dumbass in 2 different threads on a very small <1k daily users subreddit and they said I was “following him” and making “personal attacks”
Oh yes, I know of that very well. The admins have crazy trigger fingers.
Also, the experience of new users is just utter garbage. When I finally successfully sidestepped their detection of ban evasion (clear cookies + random user agent + VPN), I noticed how terrible the new-user experience is. I am supposed to gain karma to post anything, but I can’t get karma, because my account is too new and every post and comment is hidden or automatically removed. ??? BUT THE ACTUAL BOTS ARE JUST GIVING EACHOTHER KARMA! This bot prevention bullshit hurts only humans. Utter garbage website, it’s doomed, but I wish it’d die faster.
i created an acc after 1+years of ashadowbanned, i only occasionaly go on niche subs, then after a while i use powersuite to nuke the comments.
which funny enough made them lurkers.
And canning my girl Victoria
And the reddit gifts guy.
That damn “better on the app” popup completely freezes Firefox Focus on iOS.
There are times where I search something, there appears to be a reddit thread with a descriptive answer so I tap on it, I scroll down a couple swipes and boom, popup freezes the app. Can’t do anything to make the back button appear after scrolling hid it. All I can do is force close.
Use ublock origin and enable the annoyances blocklists. You’ll never see that reddit ad again
On Firefox, Desktop Mode usually fixes this.
Hey, you know what will make it easier for people to read our posts? Log in only. Also if we suck it’s googles fault.
GOOD
It’s still surprising to me that 2 years later, it’s still double the value it was when it went public.
There was never any believable story where they would go public and become profitable.
Whats the point to appear in google search, when you gonna lock your platform to have accounts to view the content… Just asking.
Hey, its rude to expect spaz to think that far
