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187 days

Reddit's stock drops 15% after the CEO said a Google algorithm tweak hurt traffic

1. Reddit reported 39% user growth but missed analyst expectations. 2. The company's Q4 revenue was $428 million, a 71% increase YoY. 3. CEO stated traffic volatility arose from Google's algorithm change. 4. 92% of revenue is from advertising, crucial for Reddit's business model. 5. AI investments, including licensing deals, aim to enhance user engagement.

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FAQ

Why Bearish?

Missed expectations can lead to negative sentiment. Past instances show stocks dropping on earnings misses.

How important is it?

The article heavily discusses Reddit's user growth and revenue, key for investor sentiment.

Why Short Term?

Immediate market reactions typically occur post-earnings reports. Future growth depends on improved user metrics.

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