Reddit Stock Keeps Falling While Popularity Soars
April 15, 4:44 pm
Reddit’s stock has been on a steep downward trajectory since its peak in February, but alternative data signals a very different story - Reddit's popularity among users is booming.
Stock Price in Freefall
Reddit’s IPO sparked excitement across both Wall Street and retail investors, peaking at $225 per share in February. But that excitement has faded quickly. As of now, Reddit (RDDT) is trading at just $96 - a staggering 57% drop in value. This decline is particularly harsh when compared to broader market trends: over the same period, the S&P 500 has only dropped 11%.
Investors appear to be pulling back, concerned about macro economics, and the company’s ability to monetize its massive user base and achieve sustainable profitability. But beneath the surface, the underlying engagement data suggests a different story.
Web Traffic Hits Record High
In March alone, Reddit.com saw an estimated 5.2 billion visits, an all-time high according to our data. To put this in perspective:
- Facebook.com received 12.3 billion visits
- Pinterest.com had 1.3 billion
- Snapchat.com got 196 million
Estimated web traffic to Reddit.com
This places Reddit far closer to tech giants like Facebook and miles ahead of Pinterest and Snapchat in terms of raw web traffic visits. Yet, Reddit’s current market cap is roughly $18.3 billion, only slightly higher than Pinterest ($17.8B) and Snapchat ($13.5B), despite its significantly higher traffic.
App Downloads Also Surging
Reddit’s mobile presence is seeing strong growth too. Our estimates show that the company just surpassed 100,000 daily app downloads, a 33% increase over the past year. This sustained growth in mobile usage underscores the platform's expanding relevance and global reach - especially among younger users who primarily engage with content on their phones.
Google Search Trends Are Climbing
Reddit’s rise in popularity isn’t just limited to direct traffic or app downloads. A look at Google Trends shows that global searches for “Reddit” have more than doubled over the past five years. This suggests a growing brand awareness and increasing curiosity among people who may not yet be active users.
Searches for Reddit according to Google Trends
What This Means for Investors
Despite the falling stock price, Reddit is becoming more embedded in the daily internet habits of millions. Its user base and brand interest are growing, but the company is still figuring out how to fully capitalize on that momentum financially.
Alternative data paints a more optimistic picture than the market currently reflects. With record-high traffic, increasing mobile adoption, and rising global interest, Reddit has all the ingredients for long-term relevance. If the company can align its monetization strategy with this surging engagement, today’s low stock price might look like a major discount in hindsight.
Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial or investment advice. All investments involve risk, and you should conduct your own research or consult a qualified professional before making any investment decisions.
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