• Reddit is trading 18.2% down at $145.59 despite reporting strong Q2 results and issuing upbeat Q3 guidance.
  • Investors are focusing on management's warning about "choppy" search referral traffic due to Google's AI-driven search changes and slowing U.S. user growth.
  • This concern about AI's impact on the business model is overshadowing the company's reported record Q2 margins and massive Q3 revenue and EBITDA guidance hike.