Reddit shares fell 29.22% on Friday, October 30, their worst day since the company’s 2024 IPO, according to CNBC. The previous record drop was 20.99% on July 31.

Reddit forecast fourth-quarter revenue of $1.0 billion to $1.03 billion, below analysts’ estimate of $1.05 billion, even though third-quarter revenue rose 53% from a year earlier. CEO Steve Huffman said search traffic from Google fell meaningfully during the quarter because of AI.

Daily users fell 2% in the third quarter, and Reddit warned they could decline by a low double-digit percentage in the fourth. The company also plans to test requiring a login to view content.

Oppenheimer downgraded the stock to “perform,” and KeyBanc cut it to “sector weight.”

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