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Reddit's AI traffic problem crashes the stock 29%

Reddit posted its worst trading day since going public after warning that Google's AI search results are cutting into the traffic it depends on, even as sales beat estimates. Tencent, led by Ma Huateng, holds a near-10% stake in the company.

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6 moves

Ma HuatengIPO / MarketsAI & techRDDTAI read · ▼ Traffic hit

Reddit crashes 29% as Google's AI eats its search traffic

The move

Reddit shares fell 29.2% on Oct. 30, the stock's worst day since it went public in 2024, after the company said Google's AI search features cut into the search-referral traffic it depends on. CEO Steve Huffman said that traffic fell sharply in the third quarter. Third-quarter revenue still rose 53% and beat Wall Street's estimate, but Reddit's fourth-quarter revenue guidance of $1.00 billion to $1.03 billion came in below the $1.05 billion analysts expected. Tencent, where Ma Huateng is chairman and chief executive, holds a 9.98% stake in Reddit's Class A shares.

Why it matters

It's a concrete sign that AI search answers are starting to divert real traffic -- and the ad dollars that come with it -- away from sites that rely on Google referrals.

The bear case

Reddit is testing a login requirement to fight the traffic loss, a move that could trade fewer casual readers for steadier, loyal ones.

What to watch

Whether Reddit's login test slows the traffic decline without hurting ad revenue.

Source · CNBCRead original ↗Report an error

Andreas von Bechtolsheim & familyInsider tradeAI & techANETAI read · ▼ Routine selling

Bechtolsheim files to sell $45 million more Arista stock

The move

Arista Networks co-founder Andreas Bechtolsheim filed notice on Oct. 30 to sell 267,892 shares, worth about $45.2 million, under a trading plan he adopted in February 2026, according to an SEC Form 144 filing. It's one of several similarly sized sales under the same plan this year, including roughly $60 million worth of stock in both August and September.

Why it matters

The filing is a routine disclosure under a pre-set 10b5-1 trading plan, not a new decision -- but it shows one of Arista's largest holders has been steadily trimming his stake all year.

The bear case

A Form 144 is only a notice of intent to sell, not a confirmed sale, and Bechtolsheim remains one of Arista's largest shareholders.

What to watch

Arista Networks' Q3 earnings, due November 3.

Source · SEC EDGAR (Form 144)Read original ↗Report an error

Lisa SuIPO / MarketsAI & techAMDAI read · ▼ AI spending jitters

AMD falls 10.9% as Amazon and Intel spook chip investors

The move

AMD shares fell 10.9% on Oct. 30 as part of a broad chip-stock selloff. The decline followed Amazon's and Intel's quarterly results a day earlier: Amazon said its 2026 AI capital spending will run about $220 billion, and Intel forecast weaker fourth-quarter revenue and profit than expected, citing supply issues. Arm Holdings, Qualcomm and Marvell each fell about 10% the same day on the same worry -- whether heavy AI infrastructure spending is paying off.

Why it matters

AMD had no company-specific news that day; the drop shows how closely chipmakers' stocks are now tied to the AI-spending plans of a handful of big customers.

The bear case

The selloff followed a steep run-up in chip stocks this year, so some of the move may be profit-taking rather than a change in AMD's own outlook.

What to watch

AMD's Q3 earnings, due November 3.

Source · NBC NewsRead original ↗Report an error

Michael DellIPO / MarketsAI & techDELLAI read · ▼ AI spending jitters

Dell falls about 11% in the same AI-spending selloff

The move

Dell Technologies shares fell roughly 10.8% on Oct. 30, part of the same selloff that hit AMD, Arm Holdings and Marvell after Amazon's and Intel's earnings a day earlier revived doubts about whether heavy AI-infrastructure spending will pay off. Nvidia and AMD lost ground alongside Dell in afternoon trading, according to a live market report.

Why it matters

Dell's AI-server business has been a big source of its recent stock gains, so it is exposed when investors turn skeptical of AI capital spending.

The bear case

The move came with no Dell-specific news; it tracked the broader chip and AI-hardware selloff rather than anything the company announced.

What to watch

Dell's next quarterly earnings report.

Source · StockTitanRead original ↗Report an error

Masayoshi SonIPO / MarketsAI & techARM · SFTBYAI read · ▼ AI spending jitters

Arm falls 10% in AI selloff, hitting Son's biggest asset

The move

Arm Holdings shares fell about 10% on Oct. 30, caught in the same selloff that hit AMD, Dell and Marvell after Amazon's and Intel's earnings a day earlier deepened doubts about AI infrastructure spending. SoftBank, led by Masayoshi Son, owns the large majority of Arm and has borrowed billions of dollars against its Arm shares to fund other AI investments, including in OpenAI.

Why it matters

The drop lands directly on one of SoftBank's biggest assets, at a time when Son has leaned on Arm's share price to back a margin loan funding other AI bets.

The bear case

A one-day swing in Arm's share price doesn't change SoftBank's underlying stake, and the stock remains far above where it traded a year ago.

What to watch

SoftBank's fiscal second-quarter results, due November 10.

Source · NBC NewsRead original ↗Report an error

Charles Koch & familyIPO / MarketsAI & techMRVLAI read · ▼ AI spending jitters

Marvell falls 10% in chip selloff, hitting a Koch stake

The move

Marvell Technology shares fell 10% on Oct. 30, part of the broad chip-stock selloff that followed Amazon's and Intel's earnings the day before. Koch, Inc., the industrial conglomerate run by Charles Koch, held 1 million Marvell shares worth about $297.9 million as of its June 30, 2026 disclosure to the SEC -- a stake exposed to the swing.

Why it matters

It's a reminder that Koch's public portfolio, usually associated with industrials and energy, also carries real exposure to the AI-chip trade.

The bear case

The Oct. 30 drop reflects sector-wide sentiment, not anything specific to Marvell or Koch's holding, and 13F filings lag by weeks, so the current position size isn't confirmed.

What to watch

Koch, Inc.'s next 13F-HR filing, due around mid-November 2026.

Source · NBC NewsRead original ↗Report an error

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What to watch

AMD's Q3 earnings, due November 3.Arista Networks' Q3 earnings, due November 3.SoftBank's fiscal second-quarter results, due November 10.Whether Reddit's login test curbs its traffic loss without hurting ad sales.

If you run a business, not a fund

A single quarter's AI-spending bill, like Amazon's $220 billion 2026 capex plan, can spook investors even when the underlying business is doing well -- big promises invite scrutiny of how you'll pay for them.Reddit's traffic hit from Google's AI search answers is a warning for any business that depends on free referral traffic -- it's worth knowing how exposed your customer pipeline is to one partner's product change.A planned, disclosed selling program, like Bechtolsheim's standing Arista stock-sale plan, reads very differently from a sudden exit once investors can see the paperwork behind it -- the same is true for how you talk about your own ownership changes.