Reddit shares slump 5% on daily active user miss

Category: Finance

Reddit shares fell 5.3% after reporting weaker-than-expected user growth in Q4, with 101.7 million daily active users, below the 103.1 million estimate. CEO Steve Huffman attributed the volatility to a Google search algorithm change but noted recovery in search traffic. Despite this, Reddit exceeded earnings expectations with 36 cents per share on $428 billion in sales, and provided strong revenue guidance for Q1. Analysts remain optimistic, with some recommending to buy the dip, although concerns about user growth and valuation persist.

Keywords: Reddit, user growth, stock market

Source: NBC 5 Dallas-Fort Worth

Update At: 2/14/2025

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