Reddit stock plunges 30% after weak outlook, heads for worst day ever

TechPublished Fri, Oct 30 20263:20 PM EDTUpdated 22 Min AgoKey PointsReddit fell 30% on Friday, putting the stock on pace for its worst day since the company went public in 2024.The social media company reported weak sales guidance in its third-quarter earnings report.Reddit also announced it will test requiring users to log in to use the platform as AI continues to hit search referral numbers.Shares of Reddit cratered 30% Friday, headed for the worst day ever, after the company forecast weak fourth-quarter sales in its latest earnings report.The decline puts Reddit on track for its steepest daily drop since becoming a public company in 2024, sinking below the previous record low set on July 31, when the stock dropped 20.99%.The social media company, on Thursday, projected fourth-quarter sales between $1 billion and $1.03 billion, below analysts' estimates of $1.05 billion. Reddit reported Q3 sales growth of 53% over a year ago, weaker than previous quarters, but beat Wall Street expectations on both earnings and revenue.The report comes as the company has seen a shift in its search referral traffic with the rise of Google's AI Overview. In an interview with CNBC, Reddit CEO Steve ...