Reddit's US user decline and AI search impact revenue growth sustainability

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Reddit's stock (RDDT) fell 30% after its Q3 earnings due to a 2% year-over-year decrease in US daily active users and the changing dynamics of Google's search traffic caused by AI, which directly answers queries and reduces clicks to Reddit, thereby impacting potential traffic and new users. This slowdown in user engagement, with logged-in daily users increasing by only 1% year-over-year and total U.S. daily users declining by 2%, raises questions about the sustainability of revenue growth as mo