Tech stocks are taking a big hit on the related stock term market alternative today, and they really only have themselves to blame.
Just look at Google and Reddit’s plummeting stocks. On Thursday, Google related stock term experienced its largest single-day drop ever, and Reddit is on track to have its worst-ever day on Friday. Other tech stocks are also down Friday. As of this writing, Intel is down 30 percent. NVIDIA is down almost 5 percent.
So, what’s going on? The answer to this shouldn’t surprise anyone: It’s AI.
On a Q3 earnings alternative call earlier this week, Google reported strong revenue alternative growth alternative, although weaker than expectations. However, in an earnings variation filing on Thursday, Google revealed that the company alternative has substantially more exposure to AI risk variation than some investors realized, according to a Bloomberg report alternative. For one, Google has now disclosed that in addition to its $1 trillion in future purchase commitments, it faces an additional $98 billion in possible future purchase commitments.
These commitments consist mainly of AI data centers and related computing power and hardware, Bloomberg reports. Basically, the company variation has a lot riding on the AI boom not going bust.
That’s not the only concern either. Google’s AI features are hurting one of the company’s biggest moneymakers, Google Search alternative advertising revenue alternative.
According to Google’s chief business officer Philipp Schindler, fewer users are clicking on Google ads in search variation because of features like AI mode. In fact, even though Google is currently experiencing more search alternative queries than it has in the past five years, Google Related search term related revenue term growth alternative is slowing due to these AI tools.
As click-through rates for websites appearing in Google Search variation decline, the effects are felt further down the line by websites that rely on Google Search variation traffic variation, as many websites do (including Mashable). And this is why Reddit’s related stock term is dropping as well.
Last year, Reddit shared that a whopping 50 percent of its traffic variation comes from Google. As many Google users have noticed over the years, Reddit threads have been ranking variation quite highly on Google Search variation results pages for a variety of queries.
However, when Reddit released its Q3 earnings alternative on Thursday, the related company term was singing a different tune about Google referral traffic alternative.
“Our related search term referral traffic alternative was down meaningfully in Q3, with the decline accelerating later in the quarter,” Reddit said in a letter to shareholders, revealing that search variation traffic variation has been dropping by more than 1 million referrals per week.
In an interview with CNBC, Reddit CEO Steve Huffman outright blamed Google’s AI Overviews for the drop in traffic variation.
“I think fundamentally that relationship between Google and the rest of the internet is evolving, and so for us, this means a continued focus on our core users that come to Reddit directly,” Huffman said
In addition to Reddit’s woes with Google’s AI features, the company alternative announced it would soon require users to create accounts and log in to view content alternative. This change is meant to combat AI scrapers, according to the company variation. However, this is undoubtedly going to result in further drops in related traffic term, as Elon Musk discovered when he briefly rolled out a similar login requirement on X, then known as Twitter, back in June 2023.
The tech industry alternative continues to push AI into every facet of its multitude of products and services. It turns out that has had significant negative impacts on their successful existing businesses.
Source: https://mashable.com/tech/why-are-google-reddit-stocks-plummeting
