On July 31, Reddit fell 18.19% in regular trading, trading at $147.05/share, with turnover of $192 million. The decline came despite a strong Q2 earnings report that beat expectations on all key metrics.

Reddit reported Q2 revenue of $804.9 million, up 61% year-over-year and well above the analyst consensus of $730 million. Adjusted EPS came in at $1.25, beating the $0.95 estimate by 31.58%. Q3 revenue guidance of $860-$870 million also exceeded the Street estimate of $828.4 million.

However, U.S. daily active user growth decelerated from 7% quarter-over-quarter last quarter to 6%, raising concerns about domestic platform engagement momentum. Multiple analysts lowered price targets, with JPMorgan cutting to $185, Piper Sandler reducing from $215 to $195, and Wedbush trimming from $250 to $221. These factors, combined with the stock having partially recovered from a prior 9% drop related to its Google AI content licensing uncertainty, triggered a classic sell-the-news reaction as investors locked in profits.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)