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

  • Reddit's stock dropped over 15% after the CEO mentioned that traffic had been affected by a Google algorithm change.
  • The impact highlights the reliance of some users on external search engines to find information on Reddit.
  • Despite a 39% user growth between 2023 and 2024, Reddit reported user growth below analyst expectations for the fourth quarter.
  • While revenue for the quarter reached $428 million, with 92% from advertising, the algorithm change primarily affected logged-out users.

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