On October 10, 2025, Reddit, Inc. (RDDT) stock closed at $198.44, down -6.26%, with after-hours trading at $192.60 (-2.94%). The sharp decline was driven by growing user discontent over recent platform changes and broader market fears related to a potential executive order impacting pharma advertising. Additional pressure came from competitive concerns following developments in the TikTok US deal and muted investor response to a potential content-sharing pact. These factors, combined with Reddit's mixed profitability metrics and high valuation, contributed to significant negative sentiment and a major price drop.
Reddit Stock Drops Sharply Amid User Backlash and Regulatory Concerns
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