Reddit shares came under pressure after Meta Platforms quietly launched Forum, a standalone iOS app built around Facebook Groups and community discussions.
The market reacted quickly. Reddit shares fell around 6%, extending a difficult year for the stock. RDDT is now down nearly 40% in 2026, despite continued revenue growth and expanding advertising and AI data partnerships.
What Is Meta’s Forum App?
Forum is essentially a dedicated discussion platform created from Facebook Groups. The app includes:
- Topic-based communities
- Searchable discussions
- AI-powered “Ask” features
- Group discovery tools
- Admin AI support
Meta described it as a place for “deeper discussions” and community interaction. The launch matters because Reddit’s core business is built around exactly that.
The Bigger Risk May Not Be Core Users
Analysts argue the threat is not to Reddit’s most loyal communities. Instead, concern centres around casual users. If Forum becomes a simple place to:
- Ask questions
- Find answers
- Join topic groups
Some users who visit Reddit occasionally may gradually shift activity elsewhere. That could affect engagement growth and future advertising potential.
Reddit Still Has Advantages
Despite the selloff, Reddit keeps several strengths:
- Deep niche communities
- Strong engagement
- Growing AI data licensing business
- More than 121 million daily active users in 2025
Some investors also note Meta tried a dedicated Groups app before and later shut it down, meaning Forum still needs to prove demand. Markets have spent much of 2026 focusing on AI competition.
Now another battle may be opening: Community platforms. And this time, Meta is stepping directly into Reddit’s territory.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
