REDDIT STOCK SINKS 25% DESPITE REVENUE BEAT

Reddit's third-quarter revenue jumped 53% year-over-year to $895 million, beating Wall Street's estimates, yet the stock sank 25% in the sell-off that followed. Investors zeroed in on Google's AI Overviews, which CEO Steve Huffman said cut into search referral traffic as the quarter wore on. Reddit's own fourth-quarter guidance of $1.00 billion to $1.03 billion in revenue fell short of the roughly $1.05 billion Wall Street expected, and the company warned daily active users could drop by a low-double-digit percentage next quarter. $RDDT just posted its strongest revenue growth as a public company, and the market still punished it.