Reddit Shares Fall on Google Traffic Concerns Despite Strong Q2

Image credit: Search Engine Journal

Reddit shares fell 21 percent after its strong second-quarter 2026 earnings report, as investor concerns mounted regarding the platform’s dependence on Google search traffic.

The social media company reported $804.905 million in revenue for the quarter, a 61 percent increase, alongside $252.848 million in net income and 64 percent ad revenue growth, with 130.3 million daily active unique users.

Despite the financial performance, analysts pointed to the broader shift in how users access information online, particularly with the rise of artificial intelligence, according to the company.

Traditional web metrics such as pageviews and clicks are increasingly insufficient to gauge genuine user understanding or trust, according to industry observers.

AI-powered tools can deliver rapid answers but frequently fail to cultivate user confidence, underscoring the enduring need for human conversation and experience, a niche Reddit occupies.

Google organic traffic to news sites globally fell 33 percent between November 2024 and November 2025, with a 38 percent drop in the United States, the Reuters Institute reported.

Pew research indicated that AI summaries in Google Search reduced clicks on traditional search results to 8 percent, compared to 15 percent when AI summaries were absent. Sources cited within these AI summaries attracted only 1 percent of clicks.

Trust in AI chatbot responses about news stood at 20 percent in 2026, significantly lower than the 37 percent trust level for news overall, the Reuters Institute’s Digital News Report found.

This digital shift suggests a changing value proposition for online platforms, where authentic human interaction may become a more critical metric than raw traffic numbers.

Source: Search Engine Journal