Reddit grows 61% as AI search referrals turn choppy

Reddit grew second-quarter revenue 61% to $805 million, yet its shares fell 11% after the company warned that search referrals had become “choppy.” Reddit’s earnings release and shareholder letter pair that traffic warning with $253 million in net income, while CEO Steve Huffman said Google’s AI Overviews have not reproduced the value of traditional search links. For publishers revisiting Google’s claim that AI search is not killing referral traffic, the operator lesson is to measure direct audience conversion separately from search reach: strong revenue no longer reassures investors when discovery rests on an answer engine.