Reddit shares drop 6% as Meta tests new Forum app competing with Reddit groups

Reddit shares fell about 6% after Meta launched a test app called Forum on Apple's iOS, aiming to compete with Reddit's online discussion groups. Analysts warn this could reduce Reddit's appeal to casual users seeking quick answers, potentially eroding its user base. Despite Reddit's strong sales growth, the new Meta app poses a fresh challenge. Truist analysts still recommend buying Reddit stock, noting the impact may be greater on less loyal users rather than core community members.