Reddit Stock Plunges 30% Post Q3 Earnings: Buy, Sell, or Hold?
Reddit's stock fell 29.8% following Q3 2026 earnings due to declining Google search referral traffic from AI Overviews, rising infrastructure costs, and weak web-user acquisition. However, strong advertising growth (54% YoY), expanding user base (12% DAU growth), and AI-powered tools like Reddit Max provide growth catalysts. The stock trades at a premium valuation with a Zacks Rank #3 (Hold) rating.