Reddit Stock Plunges 23% Toward May 2025 Lows After User Growth Miss

Reddit (NYSE: RDDT) shares plunged more than 23% to $100 in Friday’s premarket trading, approaching levels last seen in May 2025 after the social media company reported weaker-than-expected user growth. Reddit also warned that total daily active users could fall by a low-double-digit percentage in the fourth quarter if search referrals continued declining at their October pace. The selloff came despite stronger-than-expected third-quarter earnings. Reddit averaged 130.3 million daily active unique users (DAUq), up 12% year over year but below analysts’ expectations of approximately 134 million. U.S. daily active users fell 2% to 50.7 million, their first year-over-year decline since Reddit’s 2024 initial public offering. International daily users increased 24% to 79.6 million.

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