Reddit shares fell approximately 6% on Friday, reflecting market concerns about potential user attrition due to Meta’s new app, despite Reddit’s strengthening online ad business and a nearly 40% decline in stock price this year, News.Az reports, citing Intellectia.
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Truist analysts noted that this move by Meta could gradually erode Reddit’s utility, particularly for casual users, and recommended investors to keep an eye on Reddit’s stock as a potential buy opportunity.
Meta previously launched a Facebook Groups app over a decade ago but discontinued it in 2017, indicating Meta’s ongoing interest in the social discussion space and its efforts to reclaim that market segment.
