Reddit shares plummet as user growth miss takes shine off strong forecast


FILE PHOTO: The company logo for Reddit is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 15, 2024. REUTERS/Brendan McDermid/File Photo

(Reuters) -Reddit shares fell 6% in early trading on Thursday after the social media firm missed Wall Street estimates for fourth-quarter daily active unique visitors, hit by Google's search algorithm change.

Google's focus on artificial intelligence-generated summaries that provide information on top of search engine results page before traditional website links, likely hit traffic for Reddit, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

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