Reddit's stock fell 29% after its Q3 2026 earnings report due to concerns over declining daily active users in the US, attributed to reduced Google referral traffic. However, the company showed strong financial performance with revenue up 53% year-over-year, net income rising 74%, and average revenue per user (ARPU) increasing 53% in the US. Reddit's core monetization depends mainly on logged-in users and homepage feed engagement, not search referrals, with 80% of revenue coming from active logged-in users. While the valuation remains attractive at 18.7 times trailing earnings, future growth depends on increasing daily active users from weekly users.
Reddit's stock is trading at USD 98.66 on Pluang, down 2.11% as of Nov 11, 2026 04:31 WIB. The stock has a market cap of $19.46 billion and shows a high sell order activity of 80% on the platform.
Reddit (RDDT) is currently valued at 11 times its forward free cash flow and maintains a strong balance sheet with no debt. Despite concerns about declining Google traffic, Reddit is expected to achieve 35% revenue growth by 2027. The author remains ...
Reddit, Inc. saw its stock drop nearly 45% from October highs following a disappointing outlook and reduced daily active users due to changes in Google Search algorithms. Despite this, Reddit's Q3 revenue grew 53% and net profit increased 70%, suppor...
