“The reality is AI mode does not drive traffic. … Used to be a traffic driver. Now it's not. People still want Reddit. It's just Google is not sending them to Reddit the way they used to.”
sputnikintelligence.com
Explaining why Reddit's stock fell after earnings, John says Google's AI answers now satisfy searchers without a click through, so Reddit loses traffic even though people still want its content.
Yeah, totally, totally. At the same time, I think that there are certain
buttons in all the delivery apps that just says like reorder.
Reddit is down. You saw this. Reddit's selling off. I think Will mentioned it. The quotes from the earnings call are a little rough. Google is crawling us as hard as ever. The reality is AI mode does not drive traffic. So people go, they used to just say cite Reddit, click on the Reddit, click, see some of those ads over there. Now people are getting the answer directly in AI mode. Not for us and not to anybody as far as I know. So traffic is way down. Used to be a traffic driver. Now it's not. People still want Reddit. It's just Google is not sending them to Reddit the way they used to. Huffman says Reddit isn't counting on Google traffic returning. We don't control Google. We only control Reddit. And so they are going log in only. You can only use the service if you're logged in. So they're putting up a paywall, basically, or social network. Oh, yeah, registration wall. Yeah, it's a social network. It's probably the natural form of this.
The account OddStats has some odd stats for us today. Give it to us. OddStats says for absolutely no reason whatsoever. Here's a list of every time in QQQ history where it gapped down 2.5% or worse on a Friday. It's currently down almost 3.5% following a negative 1% day. And it happened three times…
Yeah, you got to have a margin of safety in this time.
I think so.