Movement Alert｜Reddit Falls 22.35% in Regular Trading, Weak Q4 Guidance and Search Traffic Pressure Weigh on Shares

Market Focus10-30 21:33

On October 30, Reddit fell 22.35% in Regular Trading, trading at $97.39 with turnover of $365 million.

The move followed the company’s latest earnings release: third-quarter results topped expectations, but fourth-quarter guidance disappointed and management warned that declining search referral traffic could pressure user growth.

Reddit reported Q3 revenue of $895 million and adjusted EPS of $1.40, both above consensus in the cited reports. However, Q4 revenue guidance of $1.00 billion to $1.03 billion was below the roughly $1.04 billion market expectation, while management said search-referred traffic is declining faster, with Google AI Overviews and AI Mode cited as major factors. The company also warned that if the trend persists, fourth-quarter daily active uniques could decline by a double-digit percentage from 130.3 million. After the release, several analysts cut price targets, and one firm downgraded the stock to Sector Weight from Overweight.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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