Reddit Stock Plunges 30% After Weak Sales Forecast

Reddit investors faced a tough morning on Friday. Shares of the social media company crashed 30% after its latest earnings report. The drop puts the stock on track for its worst single day yet.

The trouble comes down to future sales. Company leaders expect lower revenue in the fourth quarter than Wall Street wanted to see. At the same time, Reddit plans a big shift for guests. It will test asking visitors to log in before they can read forum posts.

Wall Street worries that login walls will turn visitors away. Fewer readers could hurt ad sales during the busy holiday season.

Fast changes can create big price swings for newer public tech companies. Smart investors track user numbers to see if the community remains loyal through platform updates.

Source: CNBC