Reddit stock plunges 29% after weak outlook, wrapping its worst day ever
Reddit stock fell 29% to $91.73, wrapping its worst day ever following a weak fourth-quarter outlook and shrinking U.S. user numbers. Despite posting strong third-quarter results with revenue hitting US$894.96 million and net income reaching US$283.26 million, the company faced a severe market selloff. Traffic declines were attributed to Google's AI search squeezing US traffic. In response to the shifting digital environment, the platform is shifting toward a logged-in-only experience and limiting access for logged-out users.
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- ✓ Reddit stock fell 29% to $91.73, wrapping its worst day ever.
- ✓ Revenue hit US$894.96 million and net income reached US$283.26 million in the third quarter.
- ✓ Reddit is moving to a logged-in-only experience and limiting access for logged-out users.
- ✓ Google's AI search cut US traffic to the platform.
What changed
Reddit shares experienced their worst trading day ever, plunging 29% following a weak Q4 outlook and shrinking U.S. traffic tied to Google's AI search.
Live updates
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Reddit Stock Plunges 29% After Weak Outlook
Reddit stock fell 29% to $91.73, wrapping its worst day ever following a weak fourth-quarter outlook and shrinking U.S. user numbers. Despite posting strong third-quarter results with revenue hitting US$894.96 million and net income reaching US$283.26 million, the company faced a severe market selloff. Traffic declines were attributed to Google's AI search squeezing US traffic. In response to the shifting digital environment, the platform is shifting toward a logged-in-only experience and limiting access for logged-out users.
Why it matters
The sharp market drop highlights growing investor sensitivity to traffic acquisition shifts driven by artificial intelligence search tools. Reddit faces pressure as major search engines alter how users discover content, directly impacting user acquisition metrics. The company is responding by altering its accessibility model to restrict content for visitors who are not logged into an account.
What is confirmed
- Reddit stock fell 29% to $91.73, wrapping its worst day ever.
- Revenue hit US$894.96 million and net income reached US$283.26 million in the third quarter.
- Reddit is moving to a logged-in-only experience and limiting access for logged-out users.
- Google's AI search cut US traffic to the platform.
Still unconfirmed
- Adding Reddit to a Google search could become significantly less useful due to ongoing changes.
What to watch next
- Implementation and user retention metrics following the shift to a logged-in-only experience
- Subsequent quarterly financial reports to gauge the ongoing impact of Google AI search traffic changes
confidence 100%Sources used for this update (12)
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- Yahoo Tech — Adding 'Reddit' to your Google search could be a lot less useful now
- Reuters — Reddit shares plunge as Google's AI search squeezes traffic
- Ars Technica — Reddit is moving to “a logged-in-only experience,” CEO says
- Bloomberg.com — Reddit to Limit Access for Logged-Out Users in Strategy Shift
- www.thedailydoom.com — A DEEPER DIVE FOR STOCKS: The AI Boom Just Went BOOM!
- coincentral.com — Reddit (RDDT) Stock Plunges 29% After Google AI Cuts US Traffic
- finance.yahoo.com — Reddit (RDDT) Stock Sinks As Q3 Results Clash With User Outlook
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