Reddit (RDDT) fell about 25-28% to near $97 early Friday, Oct 30, after guiding Q4 revenue to $1 billion to $1.03 billion, according to DecryptMedia.

Reddit (RDDT) fell about 25-28% to near $97 early Friday, Oct 30, after guiding Q4 revenue to $1 billion to $1.03 billion, according to DecryptMedia.

CEO Steve Huffman told CNBC that Google search referral traffic is "down meaningfully" due to Google's "shift to AI mode and AI overviews," which now answers queries instead of sending clicks to Reddit.

WatcherGuru reported the stock "crashes 28% after CEO reveals Google AI search is driving significantly less traffic to the platform."

Coin Bureau added Huffman's quote "It used to be a traffic driver, now it's not," and said search referrals dropped by more than 1 million per week on average in October.

In short: weaker guidance plus confirmation that Google AI search is squeezing a key traffic source drove the selloff.