Reddit $RDDT plunged 29% today.
Reddit warned that its daily active users could decline by double digits next quarter. The CEO pointed out that Google AI answering users’ questions directly is costing Reddit more than 1 million search visits per week. This actually lends support to my earlier view: the traditional traffic-distribution model of Google Search is being disrupted by AI.
In the past, users searched, clicked a link, and visited a website (Reddit generally ranks quite well in SEO). Now, AI gives them the answer directly, and they don’t even need to open a webpage.
If this is happening to Reddit, what lies ahead for other companies that rely heavily on Google SEO to acquire customers?
AI is disrupting not only SaaS, but the entire internet traffic-distribution system.
Reddit warned that its daily active users could decline by double digits next quarter. The CEO pointed out that Google AI answering users’ questions directly is costing Reddit more than 1 million search visits per week. This actually lends support to my earlier view: the traditional traffic-distribution model of Google Search is being disrupted by AI.
In the past, users searched, clicked a link, and visited a website (Reddit generally ranks quite well in SEO). Now, AI gives them the answer directly, and they don’t even need to open a webpage.
If this is happening to Reddit, what lies ahead for other companies that rely heavily on Google SEO to acquire customers?
AI is disrupting not only SaaS, but the entire internet traffic-distribution system.