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

Following a March 2024 IPO, Reddit's share price experienced a rapid surge, reaching a peak by February 2025. However, this growth proved unsustainable, leading to a significant decline in value by the end of March 2025. This downturn is attributed to Reddit's heavy dependence on Google traffic, which was negatively impacted by a search algorithm change, and challenges in diversifying its revenue beyond advertising, despite data deals with AI companies. Concerns also exist regarding the difficulty for user-generated content platforms like Reddit to balance monetization with maintaining community authenticity. Consequently, analysts have issued negative ratings, suggesting the company's potential is overvalued and its initial public offering may become a failure.This article is also available in English on my Medium page, «Reddit’s share price has taken a tumble: who’d have thought it?»

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