Reddit shares sink 11% on 'choppy' search referrals even as results blow past estimates

Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.Spencer Platt | Getty ImagesReddit reported second-quarter earnings on Thursday that beat on the top and the bottom lines, and the company issued guidance that sailed past expectations. But the company's shares sank after it revealed in an investor letter that "Search referrals were choppy," underscoring investor concerns about Reddit's reliance on Google to land new users.Reddit shares sink 11% on 'choppy' search referralsHere's how the company did compared with LSEG estimates:Earnings per share: $1.25 vs. 95 cents expectedRevenue: $805 million vs. $730 million expectedSales for the second quarter rose 61% year-over-year from $500 million a year earlier, the company said in a statement. Net income climbed to $253 million, or $1.25 a share, from $89 million, or 45 cents per share, the previous year.Third-quarter revenue should come in between $860 million to $870 million, the company said, while analysts were expecting $828 million. Reddit said adjusted earnings thi...