The stock is set to lose more than $2 billion from its market value of $38.01 billion as of last close, if losses hold.
Reddit shares fell 6% in early trading on Thursday after the social media firm missed Wall Street estimates for fourth-quarter daily active unique visitors, hit by Google's search algorithm change.
Google's focus on artificial intelligence-generated summaries that provide information on top of search engine results page before traditional website links, likely hit traffic for Reddit, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
But a decline in user growth, compared to a 47% increase in the previous quarter, overshadowed the company's better-than-expected revenue forecast for the first quarter and upbeat fourth-quarter revenue.
Daily active unique visitors rose 39% to 101.7 million in the fourth quarter, but missed analysts' average estimate of 103.3 million, according to data compiled by LSEG.
