Reddit stock plunges 29% after weak outlook, wrapping its worst day ever

Reddit shares collapsed 29.22% on Friday, the worst single-day drop since the company went public in 2024, after it forecast weak fourth-quarter sales in its latest earnings report.

The guidance miss was the primary driver. A second item landed alongside it: Reddit announced it will test requiring users to log in to see content. The article does not detail how the test will be structured or how long it will run.

The sequence matters for how traders read the move. The sales forecast hit the revenue line investors price most heavily, while the login test introduces a product change into the same session. Our interpretation: the market treated the two together as added uncertainty around near-term growth, though the article attributes the plunge specifically to the weak outlook.

A 29.22% single-day decline erases a large share of value in one session and sets a new low-water mark for the stock's public history. That makes Friday's close a reference point for anyone assessing whether sellers are exhausted or whether the guidance reset has further to run.