Why Reddit (RDDT) fell 12.25%
Reddit (RDDT) fell 12.25% on October 31, 2026 — Weak Q4 guidance triggers a 30% plunge.
What happened
Reddit plunged 15.1% after issuing weak Q4 guidance, with the stock down about 30% at its worst on the outlook. The weak forecast was the core driver of the day's move.
Why it moved
A soft revenue outlook signals slower ad monetization, which is the main lever behind Reddit's valuation. Investors are cutting the multiple because the growth path it implies looks weaker than expected.
Why it matters
Reddit sits in the Consumer & Internet group, which had been a defensive bid on subscription and retail resilience.
What would break the thesis
If management later clarifies that the guidance was conservative, or ad trends reaccelerate, the selloff could reverse. Continued weak ad pricing in the next quarter would confirm the multiple compression is justified.