Reddit (RDDT) shares slip lower Thursday morning after the social media platform beat fourth quarter revenue and earnings estimates, while daily active users fell below expectations (101.7 million vs. analyst consensus forecasts for 103.8 million).
Raymond James Analyst Josh Beck joins Madison Mills for a conversation on Reddit’s user figures, which the company is attributing to supposed changes in Google’s (GOOG, GOOGL) search algorithm.
“Once you unpack the results, certainly there were areas of surprise,” Beck describes. “This was really related to Google algorithm change. This happens from time to time. But… the other parts of the report were actually extremely positive. So they beat by quite a large margin on international users.”
Earlier this week, Headline Venture Partner Kamran Ansari named Reddit, Pinterest (PINS), and Snap (SNAP) as several hidden players in the tightening AI race.
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This post was written by Luke Carberry Mogan.