Meta Launches New App Threatening Reddit's User Base
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: Newsfilter
- Meta App Launch: Meta has introduced a standalone app called Forum, currently in testing on Apple's iOS, aimed at competing with Reddit and potentially attracting users with less loyalty to Reddit's community, which could impact user engagement on the platform.
- Stock Price Reaction: Reddit shares fell approximately 6% on Friday, reflecting market concerns about potential user attrition due to Meta's new app, despite Reddit's strengthening online ad business and a nearly 40% decline in stock price this year.
- Analyst Insights: Truist analysts noted that this move by Meta could gradually erode Reddit's utility, particularly for casual users, and recommended investors to keep an eye on Reddit's stock as a potential buy opportunity.
- Historical Context: Meta previously launched a Facebook Groups app over a decade ago but discontinued it in 2017, indicating Meta's ongoing interest in the social discussion space and its efforts to reclaim that market segment.
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Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 172.210
Low
207.00
Averages
260.00
High
325.00
Current: 172.210
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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