Shares in the online discussion platform tumbled 25% on Friday morning after the company issued a lower-than-expected revenue outlook.
Reddit shares on track for largest ever one-day drop — and analysts say the bad news hasn’t ended
In short
Reddit suffered a dramatic 25% share drop on Friday morning following the release of a lower-than-expected revenue outlook. This steep decline put the social media firm on pace for its largest single-day loss in history. Furthermore, market analysts caution that the adverse conditions facing the company may not be finished yet.
Key points
- Disappointing revenue guidance directly triggered a historic single-day sell-off for the…: Disappointing revenue guidance directly triggered a historic single-day sell-off for the platform.
- Investor sentiment deteriorated rapidly following the publication of the company's weaken…: Investor sentiment deteriorated rapidly following the publication of the company's weakened financial outlook.
- Market analysts warn that negative developments for the online discussion platform may co…: Market analysts warn that negative developments for the online discussion platform may continue.