What happened: Reddit (RDDT) stock plunged 29% on Friday after the company reported quarterly results. Roblox (RBLX) and Pinterest (PINS) also saw their shares decline 17% and 3%, respectively, following their earnings reports.
What’s behind the move: Reddit posted weaker-than-expected daily active users in the third quarter and issued a current-quarter revenue forecast that fell short of Wall Street estimates.
Wall Street also assessed the discussion platform’s plan to only allow access to forums to logged-in account holders. Reddit said it will start testing login requirements during the fourth quarter across select international markets before rolling out the change worldwide.
Reddit stock was down almost 60% year-to-date. In July, shares plunged more than 21% in a single day after the company failed to announce any new artificial intelligence data licensing agreements, disappointing investors who expected more revenue opportunities from AI partnerships.
91.73 -37.87 (-29.22%)
At close: October 30 at 4:03:23 PM EDT
92.20 +0.47 (+0.51%)
What else you need to know: Shares of discovery platform Pinterest also declined on Friday, as did Roblox stock.
The online game platform’s third quarter results beat loss and revenue expectations, but daily active users fell 9% year over year to 138 million.
Meanwhile, Pinterest reported third quarter revenue of $1.17 billion versus $1.21 billion expected by Wall Street. Adjusted earnings of $0.46 also came in below anticipated estimates of $0.49. Record users did not translate into expected advertising revenue, while European regulatory changes pressured cross-border advertising.
Ines Ferre is a reporter at Yahoo Finance.
Source: finance.yahoo.com
