Social media platform Reddit (RDDT) launched a set of new tools today to boost existing and new user demand, but it wasn’t enough to stop its shares sliding.
Keeping Users Engaged
In a move to try to revive Reddit’s slowdown in user growth, the company introduced changes aimed at helping people better adhere to community rules and understand content performance. The apparent aim is to get users to spend more time on the site rather than sitting on the sidelines.
One of the new additions is a “rules check” feature which is currently in a testing phase on iOS and Android. This will allow users to comply with specific rules to keep them engaged and active on the site. In short it will help users adjust their posts to avoid them being removed. A new post recovery feature will also let users repost content to an alternative subreddit if their original post is removed for rule violations. Reddit will also offer subreddit recommendations based on post content and inform users about criteria required to post in particular communities. A subreddit is simply an online group focused on a specific topic or interest.
Better Metrics
It also promised improved metrics on a post’s performance, showing user engagement stats and audience interactions. For Reddit newbies, they will now be able to find the right community for their posts through an option called “Community Suggestions.”
Reddit investors didn’t seem too impressed with its shares slumping nearly 6%. Although that could be a read-across from the news yesterday that it may be interested in buying TikTok’s U.S. arm and putting it on Blockchain.
In its Q4 results, Reddit reported an average 101.7 million daily active unique visitors in the period, down from analysts’ average projection of 103.8 million. Any improvement on those numbers as a result of the new tools will certainly be worthy of a post or two.
Is RDDT a Good Stock to Buy Now?
On TipRanks, RDDT has a Moderate Buy consensus based on 12 Buy, 6 Hold and 1 Sell rating. Its highest price target is $250. RDDT stock’s consensus price target is $207.06 implying an 30.38% upside.
