Reddit Shares Plummet 25% After Search Traffic Drop

Reddit shares plummeted 25% to $96.85 on Friday, marking the company's largest single-session percentage loss and its lowest closing price in more than a year. The sell-off followed an announcement that search referral traffic dropped significantly during the third quarter.

Analysts attribute the decline to the company's strategic shift toward a logged-in user experience. While this transition is part of a long-term strategy, experts indicate the implementation will take time and is likely to continue negatively impacting revenue in the short term.

The stock has fallen 44% since the beginning of the year, reflecting investor concerns over the company's ability to maintain traffic and monetize its user base during this transition.