Reddit told investors on Oct. 30, 2026 to expect weaker sales, and it plans to test making people log in before reading the site. CNBC said the shares fell 29.22% that Friday, the steepest drop since Reddit’s 2024 listing.
The company forecast fourth-quarter sales of $1 billion to $1.03 billion, below a $1.05 billion analyst estimate. Third-quarter sales still grew 53% from a year earlier and beat expectations on earnings and revenue. Chief executive Steve Huffman said Google search referrals fell meaningfully in the quarter because of AI overviews.
The login test is meant to increase the number of logged-in users, who are more valuable to advertisers. Huffman said Reddit had been the last major platform offering broad access without an account. Analysts cited by CNBC treated weaker referrals as a risk to user growth, not as a completed loss of the ad business.
No advertising-price cut and no consumer fee were announced. The change being tested is access, not a new charge.
Does Reddit’s outlook or login test change what a user pays? No fee or price change was announced. The verified changes are a weaker sales forecast and a planned test that could require a login.