Reddit's DAU Growth Stalls: Dependence on Google Traffic and the Risks of AI Partnerships
2025-02-16
For seven consecutive quarters, Reddit boasted more logged-in than logged-out US users, showcasing strong user loyalty. However, starting in Q4 2023, logged-out users surpassed logged-in users, with growth heavily reliant on traffic driven by Google search. Reddit's CEO acknowledged this dependence on Google's algorithm and user search habits. While Reddit pursues AI partnerships, this reliance also poses risks; its latest quarterly earnings missed expectations, causing a stock price drop. Reddit believes that in the AI era, people value authentic content more, giving it a long-term advantage.
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Google Traffic