Reddit Stock Falls 23% on Soft Q4 Revenue Outlook
Reddit reported third-quarter 2026 revenue of $895 million on October 29, 2026, up 53% from a year earlier, but its shares fell 23% after the company guided fourth-quarter revenue below Wall Street expectations. Reddit's Q3 release and Yahoo Finance carry the headline figures.
The quarter beat on the bottom line. Adjusted earnings came in at $1.40 per share against a consensus estimate of $1.33. Daily active uniques, the count of distinct users visiting in a given day, rose 12% year over year to 130.3 million. Weekly active uniques, the same measure taken over seven days, rose 16%. The gap between those two growth rates is worth noting, because it suggests the audience is growing faster on a weekly basis than on a daily one.
The guidance is where the market reacted. Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, below the $1.05 billion Bloomberg consensus. Seeking Alpha reported the forecast alongside the slowing user growth. Even the top of Reddit's range sits under the consensus figure, so the miss does not depend on how the company lands within its own band. Revenue guidance is a forecast of next-quarter sales, and for a stock priced on growth, a shortfall at that stage tends to matter more than a beat on the quarter just reported.
The comparison with April is instructive. In April 2026, Reddit forecast second-quarter revenue of $715 million to $725 million, above the $711.6 million LSEG average analyst estimate. Reuters reported that outlook at the time. The company's forward numbers moved from above consensus in the spring to below it this autumn.
The stock's history with earnings is also relevant here. Reddit reported its first quarterly profit on October 29, 2024, and its shares jumped 22% after that October report, which was boosted by AI deals. Reuters reported the 2024 move. The 2026 reaction runs the other way, and the contrast underlines how much of the share price depends on forward expectations rather than the most recent print.
Reddit was not the only social platform to sell off. Pinterest shares slumped 8% on October 30, 2026 amid weak user and revenue growth, according to Reuters. The two moves do not share a stated cause. Still, two ad-supported platforms falling on user and revenue softness in the same session is a signal investors will watch, particularly for anyone holding both.
For ordinary holders, the practical question is whether the forecast reflects a temporary slowdown or a change in the growth trajectory. Reddit's user counts grew by double digits, and its third-quarter revenue grew by more than half. What the market has repriced is the expectation for the quarter ahead. Anyone weighing a position should separate those two things: the results that were reported, and the guidance that now sets the price.
Nothing here amounts to a recommendation. Whether the fourth quarter lands inside the $1 billion to $1.03 billion range will be the number that settles the debate.
