Reddit stock plunges 30% after weak outlook, worst day ever

Reddit shares plunged 30% on Friday, heading for their worst day ever after the company issued weak fourth-quarter sales guidance and announced plans to test requiring user logins for content access. The social media company projected Q4 sales between $1 billion and $1.03 billion, below analyst estimates of $1.05 billion. Reddit reported 53% Q3 sales growth, beating earnings expectations, but CEO Steve Huffman cited a "meaningful" decline in Google search referral traffic due to AI Overviews. The login requirement marks a shift from Reddit's open-access model, with Huffman calling it "a sign of the times." Multiple analysts downgraded the stock, with Citizens noting search changes highlight risks of selling content to Google and pressure on user monetization.