Why Reddit (RDDT) fell 5.90%
Reddit (RDDT) fell 5.90% on November 12, 2026 — Traffic down 13% as AI Overviews cut clicks.
What happened
Reddit fell about 5% after Google's AI Overviews cut its referral traffic by 13%, with Reddit telling investors that these summaries are "not traffic drivers." The shares ended the session down 5.2%, and the traffic…
Why it moved
Reddit's ad inventory and user growth depend on search referrals, so a 13% traffic drop reads as fewer impressions and weaker monetization.
Why it matters
Reddit sits in the Consumer & Internet theme, which had rerated on user growth until weak outlooks at Reddit and DraftKings stalled the group.
What would break the thesis
The thesis weakens if referral traffic stabilizes or if Reddit shows that direct visits and logged-in users are offsetting the AI Overview losses. Stronger ad demand would also undercut the monetization concern.