Futures
Access hundreds of perpetual contracts
CFD
Gold
One platform for global traditional assets
Options
Hot
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Introduction to Futures Trading
Learn the basics of futures trading
Futures Events
Join events to earn rewards
Demo Trading
Use virtual funds to practice risk-free trading
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Pre-IPOs
Unlock full access to global stock IPOs
Alpha Points
Trade on-chain assets and earn airdrops
Futures Points
Earn futures points and claim airdrop rewards
Promotions
AI
Gate AI
Your all-in-one conversational AI partner
Gate AI Bot
Use Gate AI directly in your social App
GateClaw
Gate Blue Lobster, ready to go
Gate for AI Agent
AI infrastructure, Gate MCP, Skills, and CLI
Gate Skills Hub
10K+ Skills
From office tasks to trading, the all-in-one skill hub makes AI even more useful.
GateRouter
Smartly choose from 40+ AI models, with 0% extra fees
Reddit stock drops almost 6% after Meta launches standalone app for online forums
In this article
Follow your favorite stocksCREATE FREE ACCOUNT
Omar Mariques | Lightrocket | Getty Images
Reddit shares fell almost 6% on Friday on concern that a new app from Meta called Forum could create an alternative avenue for internet users to congregate and create discussion groups.
Forum, launched as a test app on Apple's iOS, is part of Facebook Groups. Analysts at Truist wrote in a note on Friday that it's "an attempt by the company to compete against Reddit as an online forum for public discourse" and "represents a new threat."
Reddit's stock is now down almost 40% this year despite a strengthening online ad business. In April, the company reported its seventh-straight quarter of sales growth topping 60%. Meta, meanwhile, reported revenue growth of 33% in the latest quarter.
"The risk from this move, if successful, is a gradual erosion of Reddit's utility for casual users who have less community loyalty to Reddit and simply want answers," wrote the Truist analysts, who recommend buying the stock. "This would affect non-core Reddit users more than directly logged-in, habitual users."
Reddit didn't immediately respond to a request for comment.
Meta, or Facebook as it was then known, created a separate Facebook Groups app over a decade ago but ended it in 2017. The service still exists as part of Facebook and, like Reddit, hosts discussion groups on all sorts of topics.
WATCH: Meta's struggle to win over AI enterprise customers.
watch now
VIDEO2:3202:32
Meta's struggle to win over AI enterprise customers
Tech
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.