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Meta has launched a standalone app called Forum, now being tested on Apple’s iOS, designed to compete with Reddit and potentially draw users less attached to Reddit’s community, which may affect engagement on the platform.
Reddit shares fell approximately 6% on Friday, reflecting market concerns about potential user attrition due to Meta's new app, despite Reddit's strengthening online ad business and a nearly 40% decline in stock price this year, News.Az reports, citing Intellectia.
Truist analysts noted that this move by Meta could gradually erode Reddit's utility, particularly for casual users, and recommended investors to keep an eye on Reddit's stock as a potential buy opportunity.
Meta previously launched a Facebook Groups app over a decade ago but discontinued it in 2017, indicating Meta's ongoing interest in the social discussion space and its efforts to reclaim that market segment.
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