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Reddit stock falls post-Q3 despite strong earnings, hit by AI search threats to user growth

Company Fundamentals
11 Nov 2026, 06:32 WIB
Seeking Alpha
View Source
Bearish
Reddit stock falls post-Q3 despite strong earnings, hit by AI search threats to user growth

Reddit's stock dropped sharply after its Q3 earnings report, even though the company beat revenue and earnings estimates and showed sequential growth in daily active users. The decline was driven by management's warning about AI-driven search tools, like Google's AI Overviews, which threaten Reddit's traditional organic search-based user acquisition. Over 56% of Reddit's visits come from organic search, so this shift could impact future growth. However, some analysts see potential for Reddit to leverage its unique content library to maintain competitive advantages despite these challenges.

Reddit's stock price on Pluang is currently USD 100.35, down 0.44% as of Nov 11, 2026 11:41 WIB, trading closer to its 52-week low of USD 90.98 than its high of USD 258.93. This suggests the market is cautious despite Reddit's recent earnings beat. The platform also shows a high sell order activity at 80%, indicating a prevailing bearish sentiment among Pluang investors with a typical hold time of 28 days.

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