Reddit shares cratered 28% after CEO Steve Huffman revealed that Google's AI-powered search is driving significantly less traffic to the platform. The sharp selloff reflects investor fears that AI summaries and overviews are eroding the referral pipeline that has long fueled Reddit's user growth and ad revenue. The disclosure marks one of the steepest single-day declines for RDDT since its IPO, underscoring mounting concerns that generative AI features in search engines could bypass content aggregators and social platforms entirely.