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.

top 96 comments

sorted by: hot top controversial new old
[–] 119 points 1 week ago (22 children)

Have they tried making the UI shittier?

  • source
  • hideshow 22 child comments
  • [–] 53 points 1 week ago (12 children)

    old.reddit, a clear example of don't fix what ain't broken

  • source
  • parent
  • hideshow 12 child comments
  • [–] 28 points 1 week ago (3 children)
  • [–] 3 points 1 week ago (1 child)

    Do people on lemmy have memory loss? This isnt the first time someone claimed something old is actually new

    People have been saying that the reddit app is unusable when the API pricing was announced

  • source
  • parent
  • hideshow 1 child comment
  • [–] 5 points 1 week ago (3 children)

    All I get is a page telling me to login

  • source
  • parent
  • hideshow 3 child comments
  • [–] 4 points 1 week ago (2 children)

    Yeah old Reddit was locked up a few months ago. They don't want people scraping and most new users use the 'new' interface.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 7 points 1 week ago (2 children)

    They're appealing to a different generation users. New reddit users think old reddit is ancient outdated design. They like the new design because it's oriented to the internet generation that uses mobile UIs.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 15 points 1 week ago

    That might actually be an active strategy.
    Making the UI worse so people have to click around more. Makes opportunity for more advertising, and makes it look like people are engaging more.
    Never really thought about it that way.

  • source
  • parent
  • [–] 7 points 1 week ago (5 children)

    You say that…

    I still use the app for 1 specific thing and let me tell you the iOS app (presumably their largest audience) is GARBAGE. And it gets worse every single release.

    The latest release has a dead zone (!) in the list view. You’ll click a row/item and nothing happens. It only occurs after using the app for a bit and only in certain vertical place (about 20% down from the top). You have to scroll the list to be to click that item. Hilarious.

    Of course all of this is on top the numerous other bugs.

    Chrstian - ONE FUCKING GUY - made a superior app by himself. What did PewDiePie say, “it’s evolving, only backwards.”

  • source
  • parent
  • hideshow 5 child comments
  • [–] 4 points 1 week ago* (last edited 1 week ago) (3 children)

    I think it took them 4 years to get their video player working too. A video player.

    Their video player still doesn't work

  • source
  • parent
  • hideshow 3 child comments
  • [–] 3 points 1 week ago (2 children)

    Their video player working would be news to me in 2026. I still have to download most videos in order to watch them.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 2 points 1 week ago

    Ugh, on the theme of media, their image-hosting is so incredibly user-hostile.

    I used image search to find something the other day, and the one I wanted was hosted on Reddit. But, it was impossible to see the whole image because Reddit insisted that the only way to see the image was with the whole forum around it, and the image resized to fit that view, with the top and bottom of the image cropped out. There was no way to actually see the full image with the top and bottom visible on Reddit. I had to actually download the image to see that part.

  • source
  • parent
  • [–] 211 points 1 week ago (21 children)

    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]

  • source
  • hideshow 21 child comments
  • [–] 93 points 1 week ago (3 children)

    Only thing left to block are logins.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 16 points 1 week ago (2 children)

    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

  • source
  • parent
  • hideshow 2 child comments
  • [–] 9 points 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 76 points 1 week ago (11 children)

    You forgot banning your userbase left and right.

  • source
  • parent
  • hideshow 11 child comments
  • [–] 40 points 1 week ago (2 children)

    Yep they hand out auto suspends and bans like it's free candy.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 17 points 1 week ago

    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"

  • source
  • parent
  • [–] 26 points 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 5 points 1 week ago* (last edited 1 week ago) (1 child)

    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

  • source
  • parent
  • hideshow 1 child comment
  • 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.

  • source
  • parent
  • [–] 13 points 1 week ago (3 children)

    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.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 55 points 1 week ago (11 children)

    Not only that, they're mandating login. I think that was announced yesterday

  • source
  • hideshow 11 child comments
  • [–] 58 points 1 week ago (4 children)

    If 80% of their advertising revenue comes from logged in users and they mandate login, soon 100% of their revenue will be logged in users. It won't be more dollars than it is now, but they will have successfully stopped those other 20% from seeing ads.

    Their whole philosophy is bizarre. Instead of letting a random from a Google search get lost in a series of recommended topics, browsing the sub, or searching for more stuff inside Reddit until they see an opinion they just need to respond to, they instead want to put up barriers to new user acquisition.

  • source
  • parent
  • hideshow 4 child comments
  • [–] 39 points 1 week ago* (2 children)

    This is 100% to make it harder for non-paying AI scrapers. Their business is mostly selling data to LLM companies now. This won't stop non-paying scrapers but now they will have to make accounts and it will be easier to spot and stop.

    They are still shooting themselves in the foot by almost completely killing search engine traffic but this is their reasoning behind it. Once again a company killing their future for the quick buck.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 1 point 1 week ago*

    i think what really hurt them was banning people so much, people refuse to login anymore, to risk anymore bans from the purges last year. bots and ai slop took over almost immediately. i dont think they will relax thier "filters" anytime soon. even the spammers who earn money from reddit, are trying evade the filters by producing "organic traffic"

  • source
  • parent
  • [–] 28 points 1 week ago* (1 child)

    If I were a stockholder, that'd be cause for me to sell. Reddit's main value comes from the fact that it's constantly acquiring new users, primarily from search engine results. Keeping users is easy enough (there are still people logging into Facebook every single day), but consistently gaining more users than losing year over year is an incredibly valuable metric to an investor. Mandatory logins would immediately bottleneck that incoming stream of users, does little to retain existing users, and is likely to scare off a statistically significant amount of existing users. This would be a huge red flag for me to dump my Reddit stock.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 2 points 1 week ago

    Keeping users is easy enough (there are still people logging into Facebook every single day),

    That only works for Facebook because of network effects. Your aunt Bertha is on Facebook and won't leave, and won't use anything else. So, the only way to keep in touch with her is to stay on Facebook.

    Are there really people on Reddit that you care about, and that you can't otherwise keep in touch with?

    The communities on Reddit are another matter. Some of the sports ones never migrated to Lemmy at all, so there isn't a good way to discuss things there. There are a few others I miss. But, it's not worth putting up with Reddit for them.

  • source
  • parent
  • [–] 14 points 1 week ago* (2 children)

    True. I used to launch Firefox in private mode to see if they had shadow banned one of my posts again (WAY too often, the answer was "yes") and just about a week ago I could not do that any more and began insisting on a log on.

    For other reasons, though, I've since committed a reddit suicide, insisted on a permaban (that was harder than I expected) and found y'all. I'm loving it.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 6 points 1 week ago

    Same, I'm done. I haven't had an active account since the api bank. I was fine browsing old reddit on ff, but that's gone.

    Almost 20 years gone, I fucking hate this so much. They just couldn't let it be with continual growth and now they'll have nothing.

  • source
  • parent
  • [–] 79 points 1 week ago (4 children)

    The only way to build a profitable business today is to make it either: A) a scam, or B) gambling. Which to you think this one was?

    If you guessed A) a scam, you are correct!

    We are currently in the "dump" phase of the pump and dump.

  • source
  • hideshow 4 child comments
  • [–] 38 points 1 week ago (4 children)

    The real story here is about Google. Not only have they robbed websites of viewers with their chatbot answers, they're making less money than they were with regular old search results and ads.

    The headline should be: Not even Google can make "AI" work, instead the chatbots have made the whole internet poorer.

  • source
  • hideshow 4 child comments
  • [–] 5 points 1 week ago

    That's an astute observation!

    Every businessman knows, you leave meat on the bone for your partners (meaning be generally a good faith business citizen that doesn't need to have all the cake) or eventually you don't have partners and you don't have business either, because your greed has razed the ecosystem.

  • source
  • parent
  • [–] 1 point 1 week ago

    What I wonder is whether Google's ad revenue was doomed or not.

    It seems like they shot themselves in the foot by having a LLM answer when you did a basic web search instead of just showing the websites. But, my guess is that they think that nobody wants that, and that if they only offered old-style search all their customers would switch to using OpenAI or Anthropic's "web search". At least by offering LLM garbage themselves, some people are still searching on Google, so there's a chance they'll see an ad.

    I don't know. I am not a normal user, and I'm out of touch with what normal people want. I have things set up so a firefox dynamic bookmark / keyword search thing uses the "udm=14" trick to go straight to the "web" tab in the Google results and not show the AI overview. But, I'm probably among only 0.001% of users who have done something like that.

  • source
  • parent
  • [–] 33 points 1 week ago (1 child)

    Whats the point to appear in google search, when you gonna lock your platform to have accounts to view the content.. Just asking.

  • source
  • hideshow 1 child comment
  • [–] 26 points 1 week ago

    Maybe if you're worried about decreasing traffic don't require an account just to read something on the internet.

  • source
  • [–] 23 points 1 week ago (3 children)

    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.

  • source
  • hideshow 3 child comments
  • [–] 20 points 1 week ago (1 child)
  • [–] 20 points 1 week ago (6 children)

    Well deserved, that site has turned into an absolute cesspool of gender wars and Russian bots. It's genuinely so hard to use now.

  • source
  • hideshow 6 child comments
  • [–] 4 points 1 week ago (3 children)

    More than half the posts are all reposts too

  • source
  • parent
  • hideshow 3 child comments
  • [–] 3 points 1 week ago

    What's really annoying is that /r/all used to be all posts from around the world, not whatever's popular locally. Now the only equivalent to that keeps trying to show me local stuff that I don't care about. I'm sure if I was willing to have an account I could curate that, but I'm not doing that.

    But, even with that forced local focus, India-related stuff is more and more popular. It seems to me that Indians are using Reddit more and more. More Indian users will probably end up driving off the more lucrative American userbase.

  • source
  • parent
  • [–] 19 points 1 week ago (1 child)

    “a low double-digit percentage“ sure is a funny way to say 10-49%, and that since it represents fully 40% of the possible values (also known as ”a low double-digit percent”) it is a worthless non statement.

  • source
  • hideshow 1 child comment
  • [–] 18 points 1 week ago

    Reddit is set to lose more than $7 billion in market value

    Good.

  • source
  • [–] 17 points 1 week ago (4 children)

    reddit is basically nothing but a less featured facebook at this point. theyve killed and stifled real news and genuine discussion. all it is anymore is memes and gooner material.

  • source
  • hideshow 4 child comments
  • [–] 7 points 1 week ago (3 children)

    It's a pseudonymous Facebook. I still think that the Internet is better when people aren't using their own real names.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 2 points 1 week ago (1 child)

    To be fair, I've always used a fake identity on Facebook since 2010 or so. At least until I got bored of the slop and quit for good, of course.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 3 points 1 week ago

    I was Pabst Blue Ribbon, from Fucking, Austria on facebook for years. There were multiples, but I had the best banner and profile picture, not at all affiliated with the brand, just a drunk ass college student with extra time to do shenanigans. That type of shenanigans bullshit was good internet.

  • source
  • parent
  • [–] 17 points 1 week ago

    they hurt thier own traffic by banning users, and the people who use accounts to earn money through the site or OF in general, and not the propaganda bots.

  • source
  • [–] 15 points 1 week ago (2 children)

    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.

  • source
  • hideshow 2 child comments
  • [–] 3 points 1 week ago* (last edited 1 week ago)

    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.

  • source
  • parent
  • [–] 14 points 1 week ago

    Funny how fake hype and bad decisions do that.

  • source
  • load more comments
    view more: next ›