Reddit shares fell 6 % in the initial trading on Thursday after the social media company lost Wall Street estimates to unique daily daily visitors in the fourth quarter, changed by the Google search algorithm.
Google’s focus on summaries created by artificial intelligence that provides information on the search engine results page before the traditional website links is likely to have reached Reddit traffic.
“With the overall view of artificial intelligence that offers more varied topics, it can be more prominent to less well -known sources,” said Stareter.
Reddit CEO Steve Hoffman said traffic from Google Search has improved in the first quarter.
Unique visitors in the fourth quarter increased by 39 % to 101.7 million in the fourth quarter, but according to data produced by LSEG, the average estimated analysts lost 103.3 million.
But the decline in user growth, compared to the 47 percent increase in the previous quarter, overshadowed the company’s forecast of better revenue for the first quarter and the fourth quarter.

The company’s shares have gained more than six times since its first appearance in March 2024.
The stock is supposed to be more than $ 2 billion of its market value of $ 38.01 billion from the last, if losses.
At least 10 brokers raised their price targets, while one of the results after the results.
The growth of international revenue of the social media platform for the first time in mid -2010 surpassed US performance, which is due to the translation of its machine learning language.
Reddit has benefited from its artificial intelligence content license transactions with Alphabet’s Google and Microsoft, sponsored by Microsoft Openai, but they did not provide a significant sloping level in the fourth quarter.
Huffman said the company is “still working” in various transactions. “We’re still talking to some great players.”
Reddit is currently trading at 196.90 times its revenue for the next 12 months, compared to 26.99 times for Snap and Pinterest 20.53.