Reddit (RDDT) shares have fallen 29.8% since its third-quarter 2026 results on Oct. 29, 2026, and are down 60.4% year to date, versus a 9.7% rise for the Zacks Computer & Technology sector. The article attributes the decline to lower Google search referral traffic as AI Overviews and AI Mode expand, which weighed on logged-out users, along with higher infrastructure costs, greater consumer marketing spend and weaker returns from web-user acquisition campaigns. Advertising revenue rose 54% year over year to $847 million on higher pricing and impressions, and the AI-powered Reddit Max tool entered public beta. Daily active uniques (DAUq) grew 12% to 130.3 million, with international DAUq up 24% to 79.6 million, while U.S. DAUq fell 2% to 50.7 million.
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