Reddit (RDDT) shares fell 34% over the five trading days through Monday, Nov. 2, after a third-quarter report showed revenue rising 53% to $895 million, but fourth-quarter guidance of $1.00-$1.03 billion fell short of the $1.05 billion bar. The company warned that search referral traffic was down meaningfully in Q3, U.S. daily users fell 2% from a year earlier, and total daily users could fall by a low-double-digit percentage this quarter. CEO Steve Huffman blamed Google's AI Mode, saying it does not drive traffic to Reddit or anyone else, while U.S. logged-out visitors fell 4% and logged-in users rose 1%. Evercore ISI cut the stock to In Line, Loop Capital cut it to Hold, and Citi kept its Buy rating but lowered its target to $186 from $245. Forward P/E has fallen to about 11x against a 26x one-year average, though the article flags Google as a risk and a data-licensing renewal due in early 2027.
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