Reddit stock faced pressure on January 28, 2026, following an 8% decline on January 27th. The drop stemmed from a Cleveland Research report warning of moderating growth prospects for 2026.
Cleveland Research projected 2026 revenue growth at 36% year-over-year. This projection fell short of the 39.1% consensus estimate. The firm cited a slowdown in new advertisers and reduced spending conviction from existing clients.
The report also raised concerns about increasing competition from YouTube. YouTube is reportedly becoming a primary data source for AI models, potentially impacting Reddit's position. Recent insider share sales by the CTO and COO compounded the negative sentiment.