Reddit's Plunging Stock Price: AI Hype Fades, Growth Concerns Rise
2025-03-30
Reddit's stock price has plummeted 50% from its February high, sparking market concerns. Its Q2 earnings report revealed it's lagging behind Meta and Google in the digital advertising space, and US traffic suffered due to a Google search algorithm change. While Reddit previously secured deals to provide content for AI model training, uncertainty about the long-term growth of the AI industry is adding to investor anxieties. Furthermore, the unlocking of early investor stakes could further depress the stock price. Although some analysts remain optimistic about Reddit's long-term growth potential, short-term volatility remains significant.
Tech
Stock Price Decline