Thu, February 13, 2025

Reddit Stock Falls After User Number Disappoints

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Reddit stock is down Thursday after the social media platform fell short of expectations on a key metric for its fourth quarter. Here's what you need to know.
The article from Kiplinger discusses the recent performance of Reddit's stock following its initial public offering (IPO). Reddit's shares experienced a significant drop after the company reported its first earnings as a public entity, which included a larger-than-expected loss and a user growth rate that disappointed investors. Specifically, Reddit's daily active users grew by 37% year-over-year to 82.7 million, but this figure was below the expectations set by analysts, who had forecasted around 84.6 million. This shortfall in user numbers, coupled with a reported net loss of $575.5 million for the first quarter, led to a decline in stock value. Despite these setbacks, Reddit's CEO Steve Huffman expressed optimism about future growth, particularly through new revenue streams like advertising and data licensing. However, the immediate market reaction was negative, reflecting investor concerns over Reddit's ability to monetize its platform effectively and achieve sustainable growth.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/reddit-stock-falls-after-user-number-disappoints ]


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