Google · CNBC Technology
Reddit stock plunges 29% after weak outlook, wrapping its worst day ever
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Shares of Reddit cratered 29.22% on Friday, the worst drop since becoming a public company in 2024, after the company forecast weak fourth-quarter sales in its latest earnings report.
Key facts
- The social media company on Thursday projected fourth-quarter sales between $1 billion and $1.03 billion, below analysts' estimates of $1.05 billion
- The previous record low was set on July 31, when the stock dropped 20.99%
- Shares of Reddit cratered 29.22% on Friday, the worst drop since becoming a public company in 2024, after the company forecast weak fourth-quarter sales in its latest earnings report
- The report comes as the company has seen a shift in its search referral traffic with the rise of Google's AI Overview
Summary
The previous record low was set on July 31, when the stock dropped 20.99%. The social media company on Thursday projected fourth-quarter sales between $1 billion and $1.03 billion, below analysts' estimates of $1.05 billion. The report comes as the company has seen a shift in its search referral traffic with the rise of Google's AI Overview. Reddit announced on Thursday that it plans to test requiring users to log in to access content, a dramatic change from a site whose community-based discussion content has become synonymous with the open internet.