Reddit has posted a strong second quarter with revenues up by 61% and net income soaring to $253 million. However, investors are uneasy after hints that search engine traffic may be unstable due to AI impacts.

The company expects even stronger growth next quarter but fears over potential revenue shifts from Google could cloud its future outlook. In a twist of irony, the very technology boosting its earnings might also sap it of users.

Retail investors remain skeptical: one analyst warned that Reddit’s stock plunge reflects concerns about user decline and the necessity of continuing data partnerships with tech giants. Amid these worries, CEO Steve Huffman remains bullish on community engagement but doesn’t rule out renegotiating terms with Google.