Caleigh Keating / CNBC : Reddit closed down 29.27% on Friday, the worst drop since becoming a public company in 2024, after it forecast weak Q4 revenue — Shares of Reddit cratered 29.22% on Friday, the worst drop since becoming a public company in 2024, after the company forecast weak fourth-quarter sales in its latest earnings report.
Reddit closed down 29.27% on Friday, the worst drop since becoming a public company in 2024, after it forecast weak Q4 revenue (Caleigh Keating/CNBC)
In short
The dramatic downturn was initiated directly by the company publishing its latest earnings report, which disappointed Wall Street expectations. A weaker-than-anticipated sales outlook for the fourth quarter swiftly triggered the widespread sell-off among shareholders. Consequently, trading ended with the stock suffering its steepest one-day fall since going public.
Key points
- The sharp market decline marks the company's worst single-day drop since its 2024 debut.: The sharp market decline marks the company's worst single-day drop since its 2024 debut.
- Investors reacted negatively to the firm's uninspiring quarterly financial performance an…: Investors reacted negatively to the firm's uninspiring quarterly financial performance and future guidance.
- Weak fourth-quarter sales projections served as the primary catalyst for the massive stoc…: Weak fourth-quarter sales projections served as the primary catalyst for the massive stock retreat.