Reddit Unveils New Tools To Improve User Experience After Slowdown In Engagement Metrics: Retail Unimpressed Amid Tech Pessimism

Community-focused social-media platform Reddit, Inc. (RDDT) announced Thursday new content moderation and analytics tools to make it easier for users to join conversations and share in communities. 

These new tools include:

• Post check
• Post recovery
• Clear community info
• Community suggestions
• Post insights

The post-check feature will allow users to check if their posts violate community rules and, in the process, avoid deletion. Meanwhile, post-recovery provides an easy way to repost content removed due to violating community rules on an alternative subreddit.

Through clear community information, Reddit intends to show users community requirements and increase the number of successful posts.

The community suggestions are meant to provide users with suggestions regarding relevant communities for their content so that it reaches the right audience. 

Reddit’s post insights tool will now give feedback to users with views, upvotes, shares and other metrics with an eye on improving their future posts.

Reddit’s fourth-quarter results, released in mid-February, showed a sequential slowdown in the growth of key user metrics. Daily active unique users (DAUq) grew 39%, slower than 47% in the third quarter, and weekly average unique users (WAUq) improved 42% versus the previous quarter’s 53%.

The growth in the DAUqs and WAUqs was slower in the U.S. versus Reddit’s international operations. 

Reddit brushed it off by saying that the slowdown was due to the volatility with Google Search triggered by a periodic algorithm change, 

The Reddit stock came under selling pressure on Thursday amid the broader tech-led market sell-off, plunging 10% to $150.72. The stock is down nearly 8% year-to-date.  

Notwithstanding the recent pullback, Reddit stock triggered ‘bearish’ sentiment (38/100) among the retailers on the Stocktwits platform. Retail chatter also remained subdued at ‘extremely’ low levels.

The negative sentiment toward the Reddit stock is tied more to the broader tech weakness. “Tech is cooked,” they said, apparently referring to the impact of President Donald Trump’s tariffs on the economy and companies. 

Another user said the stock could be in for another 70% pullback, citing elevated valuation.

Since its March 21 listing, the stock has gained about 200%.

For updates and corrections, email newsroom[at]stocktwits[dot]com 

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