Reddit Drops 6% After Meta Launches Forum App as New Threat to Casual Users
Updated
Updated · CNBC · May 22
Reddit Drops 6% After Meta Launches Forum App as New Threat to Casual Users
2 articles · Updated · CNBC · May 22
Reddit shares fell about 6% Friday as investors reacted to Meta's test launch of Forum, a new iOS app tied to Facebook Groups that targets online discussion communities.
Truist analysts called Forum a new competitive threat, warning it could gradually erode Reddit's utility for casual users seeking quick answers rather than loyal, logged-in community members.
The selloff deepened Reddit's 2026 decline to nearly 40%, even after the company posted a seventh straight quarter of sales growth above 60% in April.
Meta enters the challenge from a position of strength after reporting 33% revenue growth last quarter, while reviving a standalone groups concept it previously shut down in 2017.
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