Why is Reddit stock down 6% today?

Reddit Inc stock slid 6.0% in mid-day trading today to reach $135.67, as investors moved to reduce exposure ahead of the company’s third-quarter earnings report scheduled for after the close on Thursday, October 29 — with management’s own guidance for a deceleration in revenue growth casting a shadow over the release. The anxiety is rooted in a now-familiar pattern: after Reddit’s Q2 2026 results, the stock fell sharply despite a strong beat, as the market fixated on a sequential dip in U.S. daily users and management’s candid acknowledgment of choppy search-traffic referrals from Google. Heading into Thursday, consensus estimates call for Q3 revenue of approximately $877 million and earnings per share of $1.35, but the guided revenue range implies growth below the blistering pace of recent quarters, leaving little margin for disappointment.

On the analyst front, both Truist Securities and Evercore ISI reiterated bullish ratings ahead of the print — Truist with a Buy and $275 price target, and Evercore ISI with an Outperform and $265 target — each projecting roughly 50% year-over-year revenue growth and strong adjusted EBITDA margins. However, these reiterations have done little to arrest the selling, as the stock’s technical picture remains deeply unfavorable: Reddit is trading well below its 20-day, 50-day, 100-day, and 200-day moving averages, with a death cross still in place since earlier this year.

The broader market backdrop offers no cover for the stock’s weakness. The S&P 500 and Nasdaq are both advancing today, and nine of eleven S&P sectors are in the green. Communication Services is one of only two sectors in the red, with Snap also declining alongside Reddit, while Meta is holding relatively steady. The week also carries added macro weight, with a Federal Reserve policy decision on the horizon, though markets are assigning only a small probability to a rate move at this meeting.

Taken together, today’s decline reflects a confluence of pre-earnings de-risking, a broken technical trend, and unresolved investor questions about the durability of Reddit’s U.S. user growth and its dependence on Google-driven search traffic — all of which are keeping the stock under pressure even as Wall Street’s most bullish analysts maintain lofty price targets well above current levels.