Reddit experienced a significant share drop of over 15% after reporting 101.7 million daily active users for Q4, falling short of estimates. CEO Steve Huffman attributed the slowdown to fluctuations from a Google search algorithm change affecting logged-out users. Despite a 39% year-over-year increase in daily active uniques, the growth did not meet Wall Street expectations. Huffman emphasized the platform's resilience in adapting to Google's frequent algorithm updates, mentioning that referral traffic from search fluctuates and is part of regular operations.
Reddit's user growth was impacted by a Google search algorithm change, leading to a drop in shares despite a 39% increase in daily active uniques.
Reddit's CEO acknowledged fluctuations due to Google's updates, but stated that they have adapted effectively to the changes.
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