Reddit continues to show the flip side of AI: Chart of the Week

Published On Feb 15, 2025, 7:33 AM

Reddit has experienced significant changes in user engagement, notably a shift from logged-in to logged-out users beginning in the fourth quarter of 2023. This shift is concerning for investors as it coincided with the company's first report after going public, where daily active users started to decline significantly. Although Reddit's CEO attributes the change to improvements in product quality and an increase in traffic from Google searches, the recent quarterly results fell short of user expectations, leading to a 9% drop in stock price. This raises questions about Reddit's ability to maintain its user base and leverage its strengths in genuine user-generated content, particularly in an environment overshadowed by AI-driven content.