Reddit Shares Plummets 1.72% as Trading Volume Dips 42.41% to 112th Liquidity Rank on Earnings and Regulatory Woes

On October 6, 2025, Reddit (RDDT) closed with a 1.72% decline, marking its lowest intraday performance since its market debut. Trading volume fell 42.41% to $1.02 billion, ranking the stock 112th in liquidity among listed equities. The pullback occurred amid mixed sentiment surrounding recent corporate developments and broader market conditions.

Analysts noted muted investor activity following the company’s third-quarter earnings report, which highlighted slower user growth in key international markets. While the platform maintained its position as a top-tier social media player, concerns over monetization strategies and regulatory scrutiny in Europe contributed to cautious trading behavior. Institutional investors appeared to adopt a wait-and-see approach ahead of the upcoming Q4 guidance update.

Market participants also observed reduced short-term volatility compared to previous weeks, with Reddit shares exhibiting narrower price swings despite elevated trading volumes. This pattern suggested a temporary stabilization in investor sentiment, though technical indicators remained mixed. The stock’s relative performance against social media peers showed no significant divergence in the reporting period.

The back-test configuration requires clarification on several parameters: universe composition (e.g., exchange restrictions, asset type filters), re-balancing mechanics (entry/exit timing), weighting methodology (equal-weight allocation, capital deployment levels), and transaction cost assumptions. These factors will determine the accuracy of historical performance analysis when applying the daily selection rule from January 1, 2022, to the present date.