1 min read
What happened: Reddit (RDDT) stock plunged nearly 25% on Friday following the company’s quarterly results. Roblox (RBLX) and Pinterest (PINS) also saw their shares decline 22% and 7%, respectively, following their earnings reports.
What’s behind the move: Reddit posted weaker-than-expected daily active users in the third quarter and issued a current-quarter revenue forecast that fell short of Wall Street estimates.
Wall Street also assessed the discussion platform’s plan to only allow access to forums to logged-in account holders. Reddit said it will start testing login requirements during the fourth quarter across select international markets before rolling out the change worldwide.
Reddit stock was down roughly 43% year to date as of Thursday’s close. In July, the stock plunged more than 21% in a single day after the company failed to announce any new artificial intelligence data licensing agreements, disappointing investors who expected more revenue opportunities from AI partnerships.
95.86 -33.74 (-26.03%)
As of 10:22:36 AM EDT. Market Open.
What else you need to know: Shares of discovery platform Pinterest also declined on Friday, as did Roblox stock.
The online game platform’s third quarter results beat loss and revenue expectations, but daily active users fell 9% year over year to 138 million.
Meanwhile, Pinterest reported third quarter revenue of $1.17 billion versus $1.21 billion expected by Wall Street. Adjusted earnings of $0.46 also came in below anticipated estimates of $0.49. Record users did not translate into expected advertising revenue, while European regulatory changes pressured cross-border advertising.
Follow Ines Ferre on X at @ines_ferre.
