Reddit (RDDT) stock plunges over 22%, its largest decline since IPO, as lack of new AI deals and US daily user metric disappoints
Reddit (RDDT) shares plummeted over 22% on Friday, marking their largest intraday decline since the company's initial public offering. The sharp drop followed the company's latest earnings report, which disappointed investors by not announcing any new artificial intelligence data licensing agreements. Although revenue of $804.9 million surpassed estimates of $731.8 million, the US daily active users metric of 53.2 million fell slightly short of the 54 million expectation. CEO Steve Huffman addressed the AI deals, stating they are not 'binary' and that the company is exploring various ways for value to return to Reddit, while also noting 'headwinds' in search referrals due to changes in how users discover online content.
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