🔴 Reddit plunges 10.2% on concerns over Google AI's impact on search traffic, despite strong Q2 earnings beat

Reddit is trading 10.2% down at $161.00 in pre-market as investors react to CEO's warning about "choppy" search referral traffic due to Google's AI search changes.

• This overshadows strong Q2 2026 results which saw revenue jump 61% to $805 million and diluted EPS reach $1.25, both beating estimates.
• The company also issued upbeat Q3 revenue guidance of $860 million–$870 million.
• Concerns remain regarding Reddit's dependence on Google for user traffic, especially with AI Overviews potentially reducing referrals.