GoKawiilReddit to test mandatory logins after Google search traffic decline hits Q4 outlook
Reddit reported third-quarter revenue of $895 million and EPS of $1.40, both above analyst estimates, but gave weak fourth-quarter sales guidance that sent shares down more than 15%. CEO Steve Huffman said the company will begin testing a requirement for all users to create accounts to access the site, starting outside the U.S. in the fourth quarter, with no firm timeline for a full rollout.
GoKawiil's interpretation of the reporting above, not reported fact.
Huffman attributes the move partly to shrinking referral traffic from Google, whose shift toward AI overviews he describes as changing Google's role from 'traffic driver' to something else entirely, suggesting Reddit sees less value in anonymous search-driven visits going forward. Requiring logins could help Reddit build a more loyal, trackable user base and strengthen its data and advertising position, but it also risks alienating the casual, anonymous browsing culture that built the platform's scale.
- Reddit beat Q3 revenue and EPS estimates but gave weak Q4 guidance, pushing shares down over 15%.
- The company plans to test mandatory account creation for all users, starting outside the U.S. in Q4.
- CEO Steve Huffman links the change to declining Google search-referral traffic amid Google's AI overview push.
Source: cnbc.com — Jonathan Vanian, 2026-10-29
Published there as: “Reddit shares sink on weak sales guidance and plans login requirement test as Google search traffic shrinks”
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