Reddit’s share price has taken a tumble: who’d have thought it?

Reddit’s recent stock market performance illustrates how inflated expectations and an over-reliance on external factors can lead to a precipitous fall in share value.

After its IPO in March 2024, at an initial price of $34 per share, the company reached record highs that exceeded $230 in February 2025.

However, this has just , which has seen the value of the stock plummet to $108 by the end of March and is accompanied by multiple .

One of the main factors behind this drop is on . A recent change to Google’s search algorithm has already . This highlights the vulnerability of platforms that rely heavily on external sources to drive traffic, but even more so the fact that generative algorithms and custom agentic systems are taking over from traditional search engines.

At the same time, Reddit’s monetization has also come under scrutiny: despite very lucrative deals, such as selling data to AI companies, the platform faces significant challenges in diversifying its revenue streams and reducing its reliance on advertising without enabling brands looking to engage with its threads, treat users as stupid and…