Analysts say the sell-off reflects a structural AI threat
3 Oct 30 · 14d ago · 8 articles · 9 posts · 9 comments · 7 sources · development 3 of 6
Wall Street commentary framed the crash as more than a one-off miss, arguing AI-generated search answers are permanently diverting referral traffic and that 'the bad news hasn't ended' for Reddit's outlook.
Reddit Company at center of the storyGoogle Search provider whose AI answers are cited as the cause@puckrin Social media commentator@KobeissiLetter Financial markets accountPinterest Comparable company also affected
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What was reported 1 claim about this development
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1 outlet Reddit shares on track for largest ever one-day drop - and analysts say the bad news hasn't ended
first by Dow Jones Newswires, 15d ago
What people said 11 voices · verbatim
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Reddit stock down almost 30% today, AI search has just obliterated their search traffic. AI has destroyed the previously-indelible value of that one guy who had the answer to your tech problem in a thread from 8 years ago.
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Every time I am interested in something, if I dare get a phone call, have to respond to a person or for any reason should my phone go dark… Reddit be like, “fuck what you were reading, ima refresh yo shit!” It’s fucking maddening! Oh a let’s not mention how you can’t open an image and zoom in, it just resizes to take up the exact amount of screen…
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Yesterday's earnings call with Reddit's CEO will be referenced for years to come. Reddit, $RDDT, is now down -42% in 8 trading days. AI has disrupted search, and the internet more broadly, forever. Our thoughts on this are included below.
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Power tripping fedora sporting moderators have been around since talk boards were invented. That isn’t the issue Ad revenue is garbage because nothing here can be monetized like TikTok or IG. If I’m some new up and coming influencer there’s no way I’m bothering with reddit
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The IPO truly was the end, or at least the beginning of the end. They got rid of third party apps, they pushed ads, a shitty user interface, algorithmic suggestions for everything. The play book is exactly where Facebook went 2010-2014
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Yeah I mean at risk of changing the subject, if they're going to allow posts about Trump on this sub, they can't have a minimum character limit, Trump's shit is not deep enough to merit a serious reply.
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Well they let google scrape all their data into a giant fing llm. They don't have to ask Reddit once it's been distilled to some probabilities in their LLM. AI is a plague.
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Search engine revenue was a garbage business model to begin with Many don't realize that ad efficacy declines over time. The internet was built on a foundation of sand.
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Where is the guy on reddit that was playing options with 12m with reddit. Hope he's doing OK. He was down 2m at the start of the day.
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I understand that. I just don’t know what make Reddit a login only experience will benefit them
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I’m sorry what? Are you claiming everyone with internet access is a daily user of Reddit?
All 6 developments of Reddit stock craters as Google's AI search drains its… →
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