Core Insights - Reddit shares fell over 6% after the company reported user growth that did not meet Wall Street expectations for the fourth quarter, with daily active uniques rising 39% year-over-year to 101.7 million, below the estimate of 103.1 million [1] User Growth and Traffic - CEO Steve Huffman indicated that Reddit faced "volatility" in user growth due to a change in Google's search algorithm, which primarily affected logged-out users visiting the site without an account [2] - The search-related traffic has shown recovery into the first quarter following the algorithm change [2] - Huffman noted that fluctuations in search referrals are not unusual and mainly impact logged-out users, emphasizing the company's ability to adapt to algorithm updates effectively [3]
Reddit shares slump 6% on daily active user miss