Reddit’s stock price plunged to 50% and can go more down
Why reddit’s stock price dropped nearly 50% since February 7th and it might fall even further asked my friend who is not a fan of reddit but was recently seeing reddit in google U.S. search engine for any query unrealted to reddit or their non-authority users. My answer was reddit heavily relies on google. It was google’s agreement with reddit that could have boosted its ranking in google, but since reddit is not an authority website, but mere a user generated content that can be unfactual, false, not validated or verified, so google might start to devalue reddit pages and thus the reddit stock is going to tank more. I can even say it could go down by 70%. I never like reddit results in google because they don’t answer the query or the intent. Lots of garbage comments I’ve to go through to find a single helpful comment or tip that fulfills my search intent. So people just visit reddit and bounce-back to google or go to more better search engine – that’s Bing which showcases extact websites from content creators, authority writers, bloggers who have experience in the specific topic rather than random comments posted on reddit.
The social media platform has struggled to recover since an earnings report in February showed that it is failing to keep up with larger digital advertising peers such as Meta Platforms Inc. and Alphabet Inc.’s Google, which have higher user figures. Reddit’s outlook seemed precarious because its U.S. traffic took a hit from a change in Google’s search algorithm. Reddit shares fell more than 5% in intraday trading Friday and they might be falling in coming months.