Reddit said search referral traffic from Google fell meaningfully in the last quarter as Google's shift to AI Mode and AI Overviews stopped sending users to sites, and its stock dropped 30% on Friday. CEO Steve Huffman said people still want Reddit but Google is no longer sending them there as before, and Reddit plans to require all users to create accounts and sign in to access the site. Alphabet lost almost $500 billion in market value after reporting a slowdown in its core search advertising business, partly due to lower profitability of AI ads. Other publishers are turning to subscriptions and partnerships with AI companies, while Google maintains that its AI efforts will create a more profitable business model. Google's P/E ratio has fallen to levels not seen since 2012.
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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