How Promptwatch Crashed Reddit's Stock by 10%

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Nov 7, 2025

Klaas Foppen, Co-founder and CTO of PromptWatch, and Gagan Ghotra, an AI search and marketing expert, dive into the fallout from a report revealing Reddit's sharp decline in AI search visibility, resulting in a 10% drop in its stock. They explore how PromptWatch tracks visibility across AI tools, the implications for SEO strategies, and how AI search dims traditional web traffic. With insights on optimizing content for AI-driven searches, they discuss the evolving landscape of competitive intelligence and the future of content publishing in an AI-dominated world.

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ANECDOTE

How PromptWatch Was Born

Klaas built PromptWatch after noticing his small real-estate site kept appearing in ChatGPT answers unexpectedly.
He then instrumented CDN logs and prompt crawls to track AI citations and launched the product.

INSIGHT

Early Data Collection Built A Moat

PromptWatch tracked hundreds of millions of AI citations early and that dataset became a competitive moat.
Early investment in data collection (crawler logs + analytics) created disproportionate advantage.

ANECDOTE

The Viral Chart That Shook Reddit

Klaas published a data chart showing Reddit citations collapsing and posted it on X late at night.
The chart went viral days later and coincided with a ~10% drop in Reddit's stock price.

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E856: Klass Foppen of Promptwatch and Gagan Ghotra join the show!

We discuss the analysis that triggered headlines across the tech industry - a report suggesting a sharp decline in Reddit's visibility in AI-powered search engines, which was followed by a 10% drop in Reddit's stock price.

We examine what actually happened: how Promptwatch tracked Reddit's exposure across AI tools like ChatGPT, Perplexity, and Google's AI Overviews, and how those findings were interpreted by media, investors, and the broader search community.

This discussion goes beyond the surface story to explore how AI search visibility is emerging as a new layer of competitive intelligence - one that could influence everything from SEO strategy to public market valuation.

Topics covered: - How Promptwatch collects and analyzes visibility data across large language model–driven search interfaces - A breakdown of the Reddit report: data sources, methodology, and how the findings spread online - The timeline of events from publication to market reaction - Why AI search platforms are starting to redirect traditional web traffic - If there's a gap between organic SEO visibility and AI-generated visibility - How AI Overviews, Perplexity, and ChatGPT's Search feature affect publisher exposure - The implications for companies whose content is heavily indexed or referenced by AI models - Analysis of how AI search is redefining SEO metrics and strategies - What new performance indicators will matter to content platforms and investors - Long-term questions about attribution, transparency, and economic incentives in AI-driven discovery

⭐️ Klaas Foppen on 𝕏 - https://x.com/forgebitz ⭐️ Klaas Foppen on LinkedIn - https://www.linkedin.com/in/klaas-foppen/ ⭐️ Promptwatch - https://promptwatch.com/

⭐️ Gagan Ghotra on 𝕏 - https://x.com/gaganghotra_ ⭐️ Gagan Ghotra on LinkedIn - https://www.linkedin.com/in/gagan-ghotra/ ⭐️ Gagan Ghotra's website - https://gaganghotra.com/

💎 Compact Keywords - My SEO Course - Get paying customers through SEO - Clear step-by-step video breakdowns - SEO templates to be copied and adapted for your products and services: https://compactkeywords.com/

00:00 Introduction and Guest Welcome 01:03 Introduction to Promptwatch 04:44 SEO and AI Search Optimization 12:39 The Reddit Stock Incident 19:39 Challenges and Strategies in SEO 31:55 SEO Everywhere: The Future of Search 32:21 The Evolution of Analytics and AI Integration 33:12 Optimizing for AI: Strategies and Insights 34:37 Reddit's Role in SEO and Traffic 36:05 Long-Term Data and Subscription Strategies 37:46 The Shift from Traditional SEO to Personalized Data 41:33 Tracking AI Visibility: Challenges and Opportunities 43:56 The Future of AI in Marketing and SEO 53:48 Google's AI Mode and Its Impact on SEO 01:14:34 SEO Traffic Insights 01:15:53 Email Subscription Strategies 01:17:13 Influencing AI Visibility 01:18:38 Brand and Entity Scoring 01:23:55 Content Importance in SEO 01:25:28 Programmatic SEO vs. AI Content 01:28:53 Generative AI Use Cases 01:30:33 The Future of AI in E-commerce 01:33:30 The Role of Content in AI Discovery 01:43:45 Challenges in AI Content Creation 01:50:31 The Human Touch in Viral Content 01:53:57 The Importance of Browsing Experience 01:55:52 Conclusion and Final Thoughts

The Edward Show. Your daily search engine optimization podcast: https://edwardsturm.com/the-edward-show/

#searchengineoptimization #generativeengineoptimization #answerengineoptimization #digitalmarketing