Reddit CEO blames Google's AI Mode for losses, shares log biggest 1-day drop

Reddit shares tumbled 29% on Friday, marking their biggest single-day drop and hitting their lowest level in over a year. The sell-off came after CEO Steve Huffman warned that Google's AI-powered search features were cutting referral traffic and could shrink the platform's user base. "The AI mode doesn't drive traffic, not for us and not to anybody," Huffman said.