Reddit’s shares fell sharply after the company released its third‑quarter earnings, citing weak sales guidance and a plan to require all users to create official accounts as Google search traffic shrinks.
The social‑media platform posted Q3 results that fell short of analysts’ expectations, and its guidance for the coming year was described as weaker than hoped.
In a move aimed at tightening user control, Reddit announced it will test a login requirement for all users, meaning anyone who wishes to access the site will need to create an official account.
The change comes as Google search traffic to Reddit has been declining, cutting a key source of visitors for the platform.
Shares dropped in after‑hours trading following the earnings announcement.
Reddit is a social‑media platform that hosts user‑generated content across thousands of communities.
<small>Source: CNBC — read the original story there.</small>