Reddit stock tumbles as daily active users fall short of estimates
Published On Feb 12, 2025, 6:11 PM
Reddit's stock dropped 18% in after-hours trading due to mixed quarterly earnings results that disappointed investors. Despite a strong revenue increase of over 70% year-over-year to $427.7 million, it fell short of expected user growth with daily active users at 101.7 million, below the forecast of 103.8 million. Although Reddit's earnings guidance for the upcoming quarter exceeded analysts' expectations, the stock reaction reflects concerns over its user base and market performance. CEO Steve Huffman mentioned traffic fluctuations related to Google Search as a factor but indicated recovery was in motion.
Stock Forecasts
RDDT
Negative
Given the disappointing user growth and the recent drop in stock price, there is significant bearish sentiment in the market. Analysts remain optimistic in the long-term, but concerns about user engagement could prolong pressure on the stock.
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