Alphabet and Reddit stocks drop as AI Mode search cuts traffic

The shift toward AI-powered search modes is disrupting internet economics by replacing traditional traffic drivers with destination-like experiences, causing traffic drops for third-party sites like Reddit and monetization dips for Alphabet. While Alphabet plans to scale high-quality ads globally within AI search to offset lower monetization, Reddit argues that synthetic summaries cannot replace human connection and community. Both companies experienced sharp stock declines as Wall Street reacted to the shifting relationship between search engines and the wider web. Open article →