Reddit's stock fell by 6% in early trading after a strong first quarter earnings report, amid investor worries about daily active user growth and modifications to Googleâs Search algorithm. Although their revenue of $392 million surpassed Wall Street expectations, along with a positive revenue forecast for the second quarter, concerns lingered regarding traffic volatility caused by Google, which accounts for a substantial portion of Redditâs audience. CEO Steve Huffman cautioned about potential challenges ahead connected to these algorithm changes.
Reddit's earnings surpassed expectations but user growth and Google's algorithm changes caused concerns, leading to a 6% stock drop despite a strong earnings report.
Although earnings were strong, CEO Steve Huffman warned about potential volatility in traffic due to ongoing changes in Google Search's algorithm, which significantly impacts Reddit.
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