US Stock Market Move | Reddit (RDDT.US) Plunges Over 27% After Earnings as Q4 Revenue Outlook Falls Short of Expectations

On Friday, social forum platform Reddit (RDDT.US) opened sharply lower, down over 27% as of press time, with a cumulative decline of over 37% in October. On the news front, Reddit released its third-quarter results and fourth-quarter outlook. The company's third-quarter revenue was $895 million, versus market expectations of $869.6 million; the company expects fourth-quarter revenue of $1 billion to $1.03 billion, below the Wall Street average estimate of $1.05 billion. In addition, Reddit CEO Steve Huffman announced that the company plans to shift the user experience toward a login-account-based model, ultimately limiting the range of content accessible to unregistered users, and plans to begin testing different approaches in markets outside the US in the fourth quarter. For the past 20 years, the company has allowed users to browse its forums without registering an account. Reddit Chief Operating Officer Jen Wong acknowledged that the move may limit the platform's reach in the short term, but said it will bring more growth opportunities in the long run.