So investors ignored the great numbers and focused on one fear: if Google stops sending people, where does Reddit's growth come from?

Reddit just had maybe the best quarter of any social platform this year... revenue up 61%, profit almost tripled, users up 18%.

Stock dropped 20% anyway (it was down 23% at the lows, per CNBC).

Why? Four words buried in the investor letter: "search referrals were choppy."

That's it. That's the crash.

Basically most new people find Reddit by googling stuff. And Google's AI now just answers the question right there on the results page, so nobody clicks through.... so Wall Street ignored the great numbers and focused on one fear: if Google stops sending people, where does Reddit's growth come from?

And here's the part that actually breaks my brain: Reddit sells its content to Google to train that same AI... Google pays Reddit for the data, then uses it to answer questions so people don't visit Reddit.

The CEO got on the call and said people don't want AI summaries they want Reddit. The market listened to that argument and took the stock down 20%.

source:

[https://www.cnbc.com/2026/07/31/stocks-making-the-biggest-moves-midday-aapl-amzn-rddt-gddy-iesc.html](https://www.cnbc.com/2026/07/31/stocks-making-the-biggest-moves-midday-aapl-amzn-rddt-gddy-iesc.html)