Reddit's CEO has begun airing his concerns about Google's AI Overviews search feature. That's according to a report Saturday (Aug. 1) from Ars Technica, which said Steve Huffman addressed this issue in his latest letter to investors, arguing for Reddit's function as “the antidote to an automated web” as artificial intelligence tools proliferate.
Reddit easily trumped Wall Street analysts' quarterly profit and revenue estimates. Investors are dropping the stock anyway.
Reddit (RDDT) stock is under immense pressure this morning, even though the forum social media platform reported an impressive Q2 and offered upbeat future guidance. Investors are bailing on RDDT not because of the quarterly print itself, but more due to concerns about the company's long-term traffic growth.
Reddit is taking a cue from TikTok to bring viral stories to life through video. On Thursday's second-quarter earnings call, the company said it's been working on a new “video Reddit” experience that would not only allow users to watch videos from the platform, but also listen to posts in the background.
Reddit shares slump after management warns of search traffic volatility despite strong earnings beat
Reddit Inc (NYSE:RDDT) shares fell about 21% on Friday morning after management warned of volatility in search traffic and raised concerns among investors about potential pressure from artificial intelligence-powered search tools, despite reporting second quarter results that exceeded Wall Street expectations. The company reported Q2 revenue of $805 million, up 61% year-over-year and above anal...
Reddit reported a strong second quarter but spooked investors by mentioning in an investor letter that traffic from search engines had grown “choppy.”
As Google continues pushing AI-powered summaries to users, sites like Reddit aren't getting the same kind of referral traffic as in the past. "The 10 blue links have driven a tremendous amount of value for the whole ecosystem, and AI Overviews has yet to make a similar level of positive impact," Reddit CEO Steve Huffman said.