Reddit (RDDT) shares fell 25% in the session after the company guided fourth-quarter revenue below expectations and warned that search referral traffic was down meaningfully. Although third-quarter revenue rose 53% to $895 million, U.S. daily users fell 2% to 50.7 million. Fourth-quarter revenue guidance of $1.00 billion to $1.03 billion fell short of the $1.05 billion consensus, and the company said daily users could fall by a low-double-digit percentage from 130 million. According to the article, the main cause lies with Google, where Alphabet’s Search & other revenue rose 12% to $63.4 billion even as more searches end on Google’s AI-powered pages. The author notes Reddit’s forward P/E fell from 15x to about 12x, versus a 26x one-year average, and argues the selloff overshoots, though the stock would not look cheap if user numbers keep falling.
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Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/29/2026 | 283.75 |
| Change that session | -12.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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