Story perspectives
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.
