New York, May 22, 2026, 17:03 (EDT)
- Reddit finished 5.6% lower at $141.67 while big U.S. indexes climbed.
- Meta rolled out its Forum app, a stand-alone discussion platform spun out from Facebook Groups, with AI-assistance built in.
- Reddit kept up solid revenue gains and user growth in the latest quarter, leaving bulls and bears still debating the stock.
Reddit Inc. fell Friday, missing out on gains in the broader U.S. market. Shares dropped after Meta Platforms launched Forum, its new stand-alone app for community discussion.
Reddit shares finished the session at $141.67, off 5.57%, with 7.82 million changing hands. After the bell, the stock dropped another 0.12% to $141.50, according to Google Finance.
Stocks climbed as the S&P 500 gained 0.4%, the Dow was up 0.6%, and the Nasdaq added 0.2%. U.S. shares closed out an eighth week in a row higher. The move mattered because the tape held firm.
Meta’s Forum app, shown in the App Store under “Forum, a Facebook app,” is pitched as a “dedicated space for groups.” According to the listing, people can log in using Facebook, keep their groups and activity, post using a nickname, and try an “Ask” tool that gathers answers from multiple groups. App Store
Meta’s new Forum app looks a lot like Reddit, with features such as an AI Ask tab and an admin assistant, TechCrunch reported. The company “quietly released” the app as a stand-alone version of Facebook Groups, according to TechCrunch. TechCrunch
Reddit’s pitch to investors has focused on a blend of advertising, search-style user intent and its large archive of user conversations. In April, Chief Executive Steve Huffman told investors that Reddit is “powered by deeply engaged communities and authentic human conversation,” and said that gave the company “a unique advantage in the age of AI.” Reddit Investor Relations
Reddit posted first-quarter revenue of $663 million, up 69% from last year. Ad revenue climbed 74% to $625 million. Daily active uniques rose 17% to 126.8 million, according to the company.
Profit was up, too. Reddit posted net income of $204 million and said adjusted EBITDA came in at $266 million. The company guided for second-quarter revenue between $715 million and $725 million.
Reddit shares climbed more than 12% after the company gave an upbeat revenue outlook, Reuters said on May 1. The move was helped by new AI-driven ad tools that target ads to subreddit discussions. Chief Operating Officer Jen Wong told Reuters, “still hiring and adding to our talent base.” Reuters
But the risk is easier to see now. If Meta brings more question-and-answer traffic to Forum using Facebook Groups, AI, and its bigger user base, Reddit could see more strain on user growth, ad pricing, and how much value investors put on its data. A single app launch isn’t proof of a bigger change, but it’s a new reason for sellers to look at the stock again.
NYSE trading won’t open Monday, May 25, because of Memorial Day. Markets are set to pick up again Tuesday after the long weekend.
