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Reddit Stock Dips Despite Strong Earnings, User Growth Concerns

2/15/2025

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Story summary
  • Reddit (RDDT) stock dropped 5.3% following Q4 earnings, reporting 101.7 million daily active users, below the 103 million forecast.
  • CEO Steve Huffman attributed slower growth to Google search algorithm changes but anticipates recovery in Q1.
  • Earnings per share reached 36 cents, surpassing expectations, while sales increased 71% year-over-year to $427.7 million.
  • Analysts maintain optimism, considering the user growth decline a temporary setback.