Meta Launches Reddit-Style Forum App, Reddit Stock Falls

The social media giant has quietly rolled out a standalone community discussion app, sending shares of its closest rival sharply lower.
Meta Launches Reddit-Style Forum App, Reddit Stock Falls
Meta Launches Reddit-Style Forum App, Reddit Stock Falls The Bridge Chronicle
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Meta Platforms has launched a new standalone application called Forum, designed to give Facebook Groups a dedicated home outside the main Facebook app. The launch, which came without a formal announcement or global marketing campaign, sent Reddit's stock down nearly 6% on Friday.

The app is built around Facebook Groups and focuses on discussions, questions, and community conversations rather than viral content and short-form video. It allows users to post under a nickname instead of their real name and gives them the ability to customise their own content algorithm, selecting which topics and communities appear in their feed.

AI capabilities are built into the app from the outset. The system can automatically generate summaries of discussions across multiple groups, minimizing the need for users to manually look for relevant conversations. Group administrators also gain access to an AI-powered moderation assistant to support them in managing their communities.

Forum is currently available only on iOS and in select markets. Meta has not confirmed plans for an Android release or a wider rollout. A Meta spokesperson described it as a public test to gauge user interest.

Market Reaction

Reddit’s stock declined about 6% on Friday following the launch announcement, even as it posted strong first-quarter 2026 results. The company reported revenue of $663 million, a 69% increase from a year earlier, with advertising revenue jumping 74% to $625 million. Daily active users grew 17% to 126.8 million, and earnings per share came in at $1.01, topping forecasts.

Still, Reddit stock remains down nearly 40% in 2026, reflecting investor concerns over rising competition and the long-term impact of AI-powered platforms on community-driven websites.

Other Group Apps

Meta previously experimented with a Facebook Groups app in 2014 before shutting it down in 2017. Unlike that effort, Forum focuses on AI-powered community discussions and follows Meta’s broader strategy of launching standalone apps.

Analysts also warn that Reddit faces increasing pressure from AI search tools by Google, OpenAI and Meta, which may reduce the need for users to visit discussion forums directly.

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