Reddit CEO Slams Google AI Overviews; Stock Plummets

Reddit shares have tumbled by more than 20 percent, despite the company reporting a 61 percent revenue jump to over $804 million in its second quarter. The drop occurred after CEO Steve Huffman challenged Google AI Overviews during an earnings call. He argued that generative search summaries are not providing the commercial value that traditional web links historically offered. When search engines answer queries directly, users bypass the original source. This concern extends beyond social platforms. Industry reports show major publishers are reviewing their relationships with search operators as referral volumes shrink. Studies suggest generative summaries have nearly halved referral clicks for participating content sites. Reddit currently has a licensing deal with Google worth about $60 million annually, but executives are reportedly considering ending this partnership. This situation highlights the urgent need for digital publishers to diversify traffic acquisition strategies away from relying solely on organic search.