Reddit Introduces New Tools Amid Declining User Engagement

Reddit, Inc. is striving to achieve profitability, with analysts projecting a breakeven point within 12 months, contingent on a robust annual growth rate of 50%. The company reported a loss of $484 million for its latest financial year, yet has no debt, which alleviates some financial concerns for investors. Despite a recent slump in share prices following the announcement of new user engagement tools, Reddit's consensus target price suggests a potential upside of 16.58%. The platform's new features, designed to enhance user compliance with community rules and improve content performance, aim to address a slowdown in user growth. However, Reddit's performance is being compared unfavorably to competitors, with rivals generally outperforming it on key metrics. Investors remain cautious as Reddit continues to navigate its growth and profitability challenges amidst increasing competition in the social media landscape.