New York, May 22, 2026, 17:03 (EDT)
- Reddit closed down 5.6% at $141.67, even as major U.S. indexes rose.
- Meta’s new Forum app puts Facebook Groups into a stand-alone, AI-assisted discussion product.
- Reddit’s latest quarter still showed fast revenue and user growth, keeping the stock’s bull-bear fight open.
Reddit Inc. shares dropped on Friday, underperforming a rising U.S. market, after Meta Platforms pushed into community-style discussion with a new stand-alone app called Forum.
Reddit closed at $141.67, down 5.57%, with volume of 7.82 million shares. The stock slipped another 0.12% after hours to $141.50, according to Google Finance data.
The move mattered because it came on a day when the tape was not weak. The S&P 500 rose 0.4%, the Dow added 0.6% and the Nasdaq gained 0.2%, while U.S. stocks logged an eighth straight winning week.
Meta’s Forum app, listed by Apple as “Forum, a Facebook app,” is described as a “dedicated space for groups.” The listing says users can sign in with Facebook, carry over groups and activity, post with a nickname, and use an “Ask” feature that pulls together responses from across groups. App Store
That cuts close to Reddit’s pitch. TechCrunch said Meta had “quietly released” Forum as a stand-alone Facebook Groups app that appears to function similarly to Reddit, with an AI-powered Ask tab and an admin AI assistant. TechCrunch
Reddit’s business has been sold to investors as a mix of advertising, search-like user intent and a deep archive of human conversations. In April, Chief Executive Steve Huffman said Reddit was “powered by deeply engaged communities and authentic human conversation,” adding that this gave it “a unique advantage in the age of AI.” Reddit Investor Relations
The company’s latest numbers back up part of that case. Reddit said first-quarter revenue rose 69% from a year earlier to $663 million, ad revenue grew 74% to $625 million, and daily active uniques — its count of identifiable daily visitors — rose 17% to 126.8 million.
Profit also improved. Net income was $204 million, while adjusted EBITDA — earnings before interest, taxes, depreciation and amortization, excluding some items — reached $266 million, Reddit said. It forecast second-quarter revenue of $715 million to $725 million.
Reddit had rallied after those results. Reuters reported on May 1 that the shares jumped more than 12% after an upbeat revenue outlook, helped by AI-driven ad tools that place targeted ads in relevant subreddit discussions. Chief Operating Officer Jen Wong told Reuters the company was “still hiring and adding to our talent base.” Reuters
But the risk is now cleaner to describe. If Meta can use Facebook Groups, AI answers and its much larger user base to pull more question-and-answer traffic into Forum, Reddit could face more pressure on user growth, ad pricing and the value investors assign to its data. One app launch does not prove a shift, but it gives sellers a fresh reason to test the stock.
The next trading session will also come after a long weekend. NYSE markets list Monday, May 25, as a full Memorial Day holiday, with trading due to resume Tuesday.
