Reddit shares slump 6% on daily active user miss
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Reddit shares fell over 6% due to disappointing user growth in Q4, attributed to a Google search algorithm change.
February 13, 2025 | 3:00 pm
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NEGATIVE IMPACT
Reddit's stock price declined by over 6% following a report of weaker than expected user growth in the fourth quarter. The decline is linked to volatility caused by a Google search algorithm change.
The direct correlation between the reported weak user growth and the stock price drop indicates a negative market reaction. The CEO's statement about the impact of Google's algorithm change adds context to the volatility in user numbers, which is critical for investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100