Reddit Misses Daily Visitor Estimates Due to Google Algorithm Change, Shares Drop

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Reddit (RDDT.N) fell short of market expectations for daily active unique visitors in the fourth quarter, impacted by a change in Google’s search algorithm that reduced its visibility in search results. This announcement sent Reddit’s shares tumbling 15% in after-hours trading on Wednesday.

The San Francisco-based company, which launched its IPO in March 2024, saw its stock surge nearly five-fold last year. However, volatility with Google search at the end of the fourth quarter affected traffic from “logged-out users”—those who browse without signing in, CEO Steve Huffman said in a letter to shareholders. Despite the setback, Huffman noted that traffic from Google search has since recovered in the first quarter of 2025.

Reddit’s daily active unique visitors grew by 39% to 101.7 million for the quarter ending December 31, but this fell short of analysts’ average estimate of 103.3 million, according to LSEG data. Growth has also slowed sequentially.

“Reddit shares are down due to missed expectations on daily active users, but it’s not a reason to lose faith in the company,” said Jeremy Goldman, senior director of briefings at eMarketer. He added that Reddit’s international expansion and AI advancements could help it become a digital advertising powerhouse.

Reddit has been leveraging AI deals with Alphabet’s Google and Microsoft-backed OpenAI, as well as conversation placement ads—where brands can advertise directly within subreddit discussions. These factors have helped Reddit forecast first-quarter revenue between $360 million and $370 million, surpassing analysts’ average estimate of $358.1 million.

The company reported fourth-quarter revenue of $427.7 million, beating the $405.3 million estimate, largely driven by holiday season ad spending. Profit per share came in at 36 cents, surpassing the 25-cent estimate. Reddit’s global average revenue per user increased by 23% to $4.21.

Additionally, Huffman mentioned ongoing discussions for data licensing deals with major industry players.

Google has yet to respond to inquiries about its algorithm changes.

Cuts to USAID Halt U.S. Farm Research at Universities, Sources Say

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The Trump administration’s dismantling of the U.S. Agency for International Development (USAID) has caused farm research laboratories at land-grant universities in 13 states to cease operations, according to six lab directors. The closures mark another blow to U.S. agriculture, following efforts by President Donald Trump to overhaul the federal government. The halted research was designed to improve seed and equipment technology and develop international markets for U.S. agricultural products.

The shutdowns have compounded difficulties already faced by farmers, who have experienced disruptions to government food aid programs, agricultural grants, and loans. Land-grant universities, which were established on land granted by the federal government, have been particularly affected.

“For U.S. farmers, this is not good,” said Peter Goldsmith, head of the University of Illinois’ Soybean Innovation Lab, one of the affected facilities. The State Department did not provide a response to inquiries about the closures.

The 17 laboratories that received stop-work orders were part of USAID’s Feed the Future Innovation Labs program, which partnered with countries such as Malawi, Tanzania, Bangladesh, and Rwanda to conduct agricultural research. This research benefited U.S. farmers by developing production practices that could be applied domestically or providing early warnings about potential pest threats.

David Hughes, director of the USAID Innovation Lab on Current and Emerging Threats to Crops at Penn State University, said the shutdown limits their ability to help farmers fight pests and diseases. One halted project focused on controlling a virus harming banana crops in Tanzania.

David Tschirley, who chairs the Feed the Future Innovation Lab Council and runs a USAID-funded lab at Michigan State University, said the lab network employs about 300 people and collaborates with up to 4,000 partners abroad. “It presents an American face to the world that is a very appreciated face,” Tschirley said, emphasizing the research’s role in promoting national security.

Stop-work orders were issued to all 17 labs at the end of January after Trump froze most foreign aid. Since then, the labs have received no further guidance from the State Department. Some universities have attempted to cover costs temporarily, with mixed success.

At Michigan State, Tschirley’s lab has been allowed to retain employees under the assumption that USAID will eventually approve funding. However, Goldsmith laid off all 30 staff members at his lab last week and plans to close it entirely by April 15. His lab had previously assisted African farmers with soy planting and helped companies establish soy-processing plants.

Some agribusiness partners of the labs include Bayer, Corteva, BASF, and Archer-Daniels-Midland. Bayer stated it is assessing the funding halt, while other companies did not comment.

The funding freeze is part of broader actions by Trump to reshape the federal government. For example, U.S. commodity purchases were temporarily suspended following Trump’s January 24 order halting most foreign aid. Additionally, federal farm program payments have been delayed due to Trump’s directive freezing loans and grants, though this order has been blocked in court.

Robinhood Beats Profit Estimates as Post-Election Trading Surge Lifts Volumes

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Robinhood (HOOD.O) exceeded expectations for fourth-quarter profit, driven by a sharp rise in equity, options, and cryptocurrency trading after Donald Trump returned to the White House. Following the announcement, Robinhood’s shares jumped more than 14% in after-hours trading.

The company’s transaction-based revenue soared 236% to $672 million compared to the same quarter a year ago, fueled by increased fees from options, equities, and crypto trades.

Crypto trading activity was a major growth driver, with revenue from that segment rising 700% during the quarter as bitcoin approached the $100,000 mark. Investors were optimistic about pro-crypto policies expected under the new Trump administration.

“It was no secret that Robinhood’s Q4 earnings were going to be great, driven primarily by a huge uptick in crypto-related revenues,” said John Wu, President of Ava Labs.

The surge in equity and crypto markets came after Trump’s election victory, as investors anticipated deregulation and pro-business policies that would favor U.S. corporations and the growing digital asset sector.

Robinhood reported an adjusted profit of $1.01 per share, well above analysts’ expectations of 44 cents, according to data from LSEG.

The company’s assets under custody increased by 88% to $193 billion during the quarter, and quarterly net interest revenue, driven largely by margin investing, rose 25% to $296 million.

“This was a big quarter for us, so we did over $1 billion in revenue for the first time in the history of the company, and that capped off what was a record-breaking year with over $3 billion in revenue for the whole year,” Robinhood co-founder and CEO Vlad Tenev said on the company’s post-earnings call.