Reddit shares crash 29% after weak Q4 outlook, Google search traffic concerns; set for worst-ever 1-day fall

Reddit shares fell roughly 29% after the company issued a weak fourth-quarter outlook and raised concerns about traffic it receives from Google search, putting the stock on track for its worst single-day decline since its public listing. The transmission channel here is company-specific fundamentals rather than macro: a reduced expectation of search-referred user traffic directly threatens Reddit's ad inventory and revenue forecasts, and the sharp repricing reflects investors cutting their growth assumptions for the platform. Alphabet's Google (GOOGL, GOOG) is the most directly referenced asset, since the traffic concerns involve Google's search algorithms and referral patterns, though the headline does not establish any change in Google's own financials. Traders should watch Alphabet's next commentary on search product changes and AI-driven search features, along with any analyst revisions to Reddit's guidance, as these will indicate whether the traffic issue is isolated to Reddit or signals a broader shift in how Google routes users to third-party content.

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