Reddit Shares Drop 18% Following Slowing User Growth and Weak Q4 Guidance
Reddit (RDDT) shares experienced a significant post-market decline of approximately 18% following its third-quarter earnings report. While the company exceeded analyst expectations for both revenue and earnings, investor concern centered on decelerating daily active user growth and a fourth-quarter revenue forecast that fell below market consensus. Despite a robust 53% year-over-year increase in revenue to $895 million, the mismatch between top-line performance and future guidance triggered a sell-off. The market reaction highlights growing sensitivity toward user engagement metrics and long-term growth sustainability for the social media platform.
Tickers: $RDDT
Topics: earnings report revenue growth stock price movement user metrics
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