Reddit beat earnings but the stock dropped anyway

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60% revenue growth is real money, but Reddit’s gotten good at growth right before a major user revolt. The API pricing thing, the mod blackout, the AI training data fight. Each time they crush it on revenue for a quarter then have to walk something back. This feels like the same shape.

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They’re making money off search referrals and API licensing now, which makes sense. But those revenue streams only work if people stay.

source: Reddit shares sink 11% on 'choppy' search referrals even as results blow past estimates

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“choppy search referrals” is such a weird phrase for what’s actually happening though. Feels like Google keeps tweaking their algorithm and Reddit’s traffic just rides that wave whether they like it or not. Not really something Reddit can control quarter to quarter, so calling it “choppy” almost undersells how exposed they are to a company that’s also trying to eat their lunch with AI overviews.