GoKawiilReddit shares drop 30% after weak Q4 revenue forecast
Reddit's stock fell 30% Friday, its worst single-day decline since going public in 2024, after the company guided fourth-quarter sales to $1 billion-$1.03 billion, below Wall Street's $1.05 billion estimate. The forecast came despite Reddit beating expectations on Q3 earnings and revenue, which grew 53% year-over-year but at a slower pace than prior quarters. CEO Steve Huffman said search-referral traffic from Google declined significantly this quarter due to AI Overviews, and the company announced plans to test requiring logins to view content.