Reddit (NYSE: RDDT) recently announced its Q1 earnings, reporting a profit of $0.13 per share on revenue of $392 million. This exceeded market expectations of $0.01 per share and $370 million in revenue.

CEO Steve Huffman said in an earnings call that the company still expects some "bumps" in traffic due to Google's algorithm.

The stock price is likely also being affected by the fact that the U.S. economy contracted in the first three months of the year, its first quarterly decline since 2022. Reddit's stock fell by as much as 11% today and was down by 7.7% as of 11:43 a.m. ET on Wednesday.