Key Stats for Reddit Stock
- Price change for Reddit stock: -6%
- $RDDT Share Price as of May. 22: $142
- 52-Week High: $283
- $RDDT Stock Price Target: $225
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What Happened?
Reddit (RDDT) stock dropped nearly 6% on Friday after Meta quietly launched a new app called Forum.
- The app, currently in testing on Apple’s iOS, is built on top of Facebook Groups.
- It lets users create and join discussion communities, which is essentially what Reddit does.
- Analysts at Truist called Forum “an attempt by Meta to compete against Reddit as an online forum for public discourse” and flagged it as “a new threat.”
This isn’t Meta’s first swing at this.
Facebook launched a standalone Groups app over a decade ago but shut it down in 2017. The Groups feature never went away — it just stayed inside Facebook.
Now Meta is trying again, this time as a dedicated product aimed squarely at Reddit’s territory.
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What the Market Is Telling Us About Reddit Stock
The drop makes sense given the timing. Reddit stock is already down around 40% this year, so investor confidence is fragile. Any new competitive threat tends to hit harder in that kind of environment.
- That said, Truist still has a buy rating on Reddit stock. Their view is that the real risk is losing casual users — people who visit Reddit for quick answers but don’t have deep loyalty to the platform.
- Core users who log in daily and participate in communities are less likely to leave.
Reddit’s business has actually been performing well.
- The company just reported its seventh straight quarter of revenue growth above 60%.
- Its ad business is growing fast, gross margins sit above 90%, and
- free cash flow hit a record in Q1 2026.
- Meta, for context, grew revenue 33% last quarter — impressive, but Reddit is growing faster off a smaller base.
The concern isn’t today’s numbers. It’s whether Forum chips away at Reddit’s user base over time — which would eventually slow ad revenue growth.
Reddit stock remains a high-growth story. But with Meta now entering its space, the path forward just got a little harder to call.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
