Reddit Shares Plunge 30% After $1 billion Q4 Outlook Miss, Forcing Login-and-Ads Pivot
Updated
Updated · Yahoo Finance · Oct 30
Reddit Shares Plunge 30% After $1 billion Q4 Outlook Miss, Forcing Login-and-Ads Pivot
3 articles · Updated · Yahoo Finance · Oct 30
Summary
Reddit shares sank more than 30% Friday — their worst day as a public company — even after a narrow quarterly beat, as investors focused on weaker guidance and a strategic shift.
Q4 revenue guidance of $1 billion to $1.03 billion missed Wall Street's $1.05 billion estimate after Google Search referrals, long central to Reddit's traffic growth, fell sharply.
Steve Huffman said Reddit will push more users to log in so they can get the site's “best” experience, a move aimed at improving personalization and ad targeting without requiring real-name identity.
The selloff leaves Reddit down 62% since Jan. 1 and underscores a broader internet shift as AI chatbots and Google AI answers divert users from open web search toward closed, logged-in platforms.