Reddit shares fell 29.22% during trading on October 30, 2026, after the company forecast fourth-quarter revenue below analyst expectations. The decline put the stock on course for its worst day since Reddit went public in 2024.

Key Takeaways

  • Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, below the $1.05 billion analysts expected.
  • CEO Steve Huffman said Google search-referral traffic fell meaningfully during the quarter, and Reddit plans to test a login requirement.

Reddit shares follow weaker outlook

The Friday decline followed Reddit’s October 29 earnings release. The previous largest one-day drop for the stock was 20.99% on July 31. The trading move followed the forecast, although its timing alone does not establish a cause.

Reddit’s fourth-quarter revenue guidance was below analyst expectations even though its third-quarter revenue and earnings exceeded them. Multiple analysts downgraded the stock after the results.

Revenue growth and user traffic

In its third-quarter results, Reddit reported revenue of $895 million, up 53% from a year earlier, and net income of $283 million. Revenue growth was slower than in previous quarters. Daily active uniques rose 12% year over year to 130.3 million.

Huffman said referral traffic from Google declined meaningfully during the quarter because of AI. Reddit also plans to test requiring users to log in to access content, a change intended to increase the number of logged-in users who are more active on the platform and help its advertising business, he said.

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