Reddit (RDDT) Stock News

Reddit down 42% in 8 sessions after CEO: AI mode no longer drives traffic.

Citizens JMP lowered its rating on Reddit (RDDT) to Market Perform from Market Outperform, according to a Benzinga report. No price target was provided in the initial note.

Reddit CEO: AI mode no longer drives traffic, echoing search disruption fears.

KeyBanc cut its rating on Reddit to Sector Weight from Overweight, according to Benzinga ratings coverage. No price target or detailed rationale was included in the brief.

Oppenheimer lowered its rating on Reddit (RDDT) to Perform from Outperform. No price target was provided.

Stock futures were mixed Monday as technology shares sold off on disappointing earnings. Intel fell 25% after a fatal explosion and weak guidance, dragging Dell and HP. Amazon dropped 6.3% on retail and advertising revenue misses. Reddit lost 19% on weaker user growth tied to Google search changes. The tech selloff hit cloud and chip stocks. Oil companies bucked the trend: ExxonMobil rose 1.6% and Chevron gained 1.2% on huge third-quarter profits driven by the Iran conflict.

S&P 500 futures fell 1.05% ahead of the open, with Intel down 25.7% and Reddit down 19.0% after earnings. Donaldson, Mondelez, Rivian, and Regeneron posted strong premarket gains. Brent crude rose 2.42%, gold fell 1.19%, and the 10-year Treasury yield dropped to 4.911%.

KeyBanc Capital Markets cut Reddit (RDDT) to Sector Weight from Overweight. The downgrade signals reduced conviction in near-term upside for the social media stock.

Citizens downgrades Reddit to Market Perform.

Intel down >25% on weak Q3 and Q4 guidance. Amazon net income >$20B but free cash flow plunged, shares lower. Reddit down >22% on slower user growth. Rivian revenue up, loss narrowed. Exxon and Chevron report before the bell.

Reddit reported Q3 daily active users of 130.3 million, below the 134 million estimate. US users fell 2% year over year. CEO Steve Huffman warned search traffic is dropping more than 1 million referrals per week, which could lead to a low double-digit percentage decline in Q4 DAUs. Advertising revenue beat estimates at $847 million. Adjusted EPS of $1.40 also beat. Shares fell 23% in premarket trading to $100.15. No update was provided on AI licensing deals with Alphabet and OpenAI.

Reddit beat Q3 revenue and EPS estimates but missed on daily active users (130.3M vs ~134M expected). Q4 guidance of $1B-$1.03B was below consensus. CEO cited Google AI Overviews hurting search traffic, with DAUq potentially falling low-double-digit % in Q4. Stock down 11-18% after hours.

CEO Steve Huffman said Google's AI Overviews are not sending traffic to Reddit or any site, and Reddit isn't counting on that traffic returning. He noted Google is teaching users to come directly to Reddit. The remarks follow Reddit's Q3 earnings miss on user growth and a warning that search referrals have dropped sharply.

Intel fell more than 19% after weak Q4 guidance. Amazon dropped about 6% as free cash flow plunged. Reddit slumped 16% on slower user growth. Pinterest fell 11% on a miss. Starbucks slipped almost 2% on a revenue miss. Gilead rose about 2.6% after raising guidance.

Reddit reports Q3 earnings Thursday after close. Analysts expect EPS $1.33, revenue $875M, ad revenue up 51%. Key focus: daily active user trends after Q2 decline and potential data-licensing renewal upside. Stock down 41% YTD.

Needham maintained its price target for Reddit shares at $300.00.

Reddit CEO: Unattributed app downloads in hundreds of thousands daily, in active Google talks.

The European Commission designated Reddit and Roblox as Very Large Online Platforms. ChatGPT was designated a Very Large Online Search Engine. All three have four months to comply with stricter DSA rules on harmful content, transparency, risk mitigation, and child safety. Violations carry fines of up to 6% of global annual revenue.

ChatGPT's citations of Reddit in search results have fallen sharply. Promptwatch data shows Reddit's share dropped from 3.8% to 0.5% in mid-August. In April, Reddit was the most-cited domain at 4.14%.

Reddit (RDDT) is set to join the S&P 500 index, triggering a sharp rally in the stock. Shares rose more than 10% on the announcement.