Movement Alert｜Reddit Intraday Decline 5.48% in Regular Trading, DAU Pressure and Target Cut Weigh Ahead of Earnings

Market Focus10-26 21:45

On October 26, Reddit fell 5.48% in Regular Trading, trading at $134.88 per share, with turnover of $97.99 million.

The move aligns with a fresh pre-earnings cautionary setup: analysts recently flagged near-term pressure on daily active users from search algorithm changes and AI search products, while Jefferies also reduced its price target to $200 from $225.

Into Reddit’s October 29 report, analysts lowered third- and fourth-quarter US daily active user estimates due to traffic headwinds tied to Alphabet search changes and AI search tools. At the same time, higher ARPU assumptions largely kept revenue expectations intact, with projected third-quarter ad revenue of $824 million, up 50% year over year, and expectations for strong top-line and EBITDA performance. The market appears focused more on the near-term user-growth pressure than on monetization resilience.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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