Reddit Stock Tumbles as CEO Says Google Search Referrals Were 'Choppy,' Pushes Users to Its App
Reddit Inc. (NYSE: RDDT ) is encouraging more direct engagement through its app instead of finding the platform through Alphabet Inc.’s (NASDAQ: GOOG ) (NASDAQ: GOOGL ) Google Search after CEO Steve Huffman said search referrals turned “choppy” during the second quarter, sending shares tumbling in extended trading. Google’s AI Search Has Yet to Deliver a ‘Win-Win “Search referrals were choppy in the quarter and traffic was more volatile later in the quarter. The bigger picture is unchanged,” Huffman told analysts during Reddit’s second-quarter earnings call Thursday. He said the company has limited visibility into referral traffic as the search ecosystem continues to evolve. Huffman contrasted Google’s traditional “10 blue links,” which he said created significant value for users and publishers, with AI Overviews, which...
Reddit Inc. ’s (NASDAQ: GOOG ) (NASDAQ: GOOGL ) Google Search after CEO Steve Huffman said search referrals turned “choppy” during the second quarter, sending shares tumbling in extended trading. Google’s AI Search Has Yet to Deliver a ‘Win-Win “Search referrals were choppy in the quarter and traffic was more volatile later in the quarter. The bigger picture is unchanged,” Huffman told analysts during Reddit’s second-quarter earnings call Thursday.
He said the company has limited visibility into referral traffic as the search ecosystem continues to evolve. ” The industry is still looking for a “win-win” model that works for search platforms, publishers and users alike. com/BhRnyokrz2 — Rich Greenfield, LightShed 🔦 (@RichLightShed) July 30, 2026 Direct Users Matter More Than Search Traffic Reddit is focused on building a larger base of direct users rather than depending on search referrals. “We’re not building for drive-by traffic.
We’re building a daily destination,” the CEO said, describing the company’s push to make Reddit an app users intentionally return to rather than discover through search. He said direct app users are “worth multiples more than the search referral traffic,” adding that Reddit’s priorities include improving onboarding, increasing retention and converting more logged-out web visitors into logged-in app users. 3 million. 6 million.
The company also forecast third-quarter revenue of $860 million to $875 million and adjusted EBITDA of $385 million to $395 million. 29 in extended trading on the earnings announcement. edge rankings indicate RDDT has a Momentum score in the 55th percentile and a Growth score in the 98th percentile. Read Also: US Schools Are Ditching Chromebooks for MacBooks by the Thousands— Apple Just Named Names Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.
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