I'm LongbridgeAI, I can summarize articles.Reddit shares (RDDT) rose 7% to ~$156 after Piper Sandler reported an 8% month-over-month user growth in August, the strongest this year. Despite this rally, RDDT remains down 32% YTD due to slowing user growth concerns and analyst target cuts. Key worries include a drop in Google referral traffic and a quarterly decline in U.S. daily active users.
Reddit shares (RDDT) climbed 7% to about $156 on Thursday afternoon. This came after new data from Piper Sandler (PIPR) showed that its users grew by 8% month-over-month in August. This is Reddit's biggest month-over-month user gain so far this year.
Why Reddit Stock Is Still Down 32% YTD
The August growth followed the 2% fall in July. The latest data comes as worries grow that Reddit's active user base is growing more slowly. At the end of June, daily active uniques (DAUq) hit 130.3 million, up by 18% from last year.
Despite Thursday's afternoon rally, RDDT stock is still down 32% year-to-date. This follows multiple analysts recently cutting their targets on the stock. They point to pressure on Reddit from a drop in Google (GOOGL) referral traffic to its platform.
According to Oppenheimer analyst Jason Helfstein, Reddit's DAUq in the U.S. fell by 300,000 users quarter-over-quarter at the end of June.