Why Did RDDT, IREN, MBLY Stocks Tumble To 52-Week Lows Last Week?

Investors were worried about growth in social media, data centers and self-driving technology.

• Reddit stock faced pressure as Google search referrals fell by over 1 million users weekly in October. 
• IREN shares fell to a yearly low of $23.06 ahead of earnings amid concerns about high borrowing costs. 
• TD Cowen downgraded Mobileye to ‘Hold’ on product delays and competitive pressures. 

Reddit (RDDT), IREN (IREN) and Mobileye (MBLY) shares hit fresh 52-week lows on Friday as investors weighed weakening Google search traffic, rising infrastructure financing costs and delayed automotive technology rollouts. 

Reddit stock crashed 29%, while IREN and Mobileye stocks dropped 8% and 7%, respectively. 

Reddit: Strong Earnings Fail To Offset Search Traffic Concerns

Reddit stock declined to an annual low of $89.28 despite a strong third quarter (Q3). Revenue climbed 53% year-on-year to $895 million, supported by advertising revenue of $847 million, up 54%. Net income increased 75% to $283 million, or $1.40 per diluted share.

However, CEO Steve Huffman disclosed that Google-related search referrals had fallen by more than 1 million users weekly on average during October. The decline mainly affected visitors browsing Reddit without logging in. The company warned that Q4 daily active unique visitors could fall by a low-double-digit percentage from its Q3 level of 130.3 million. Its revenue outlook of $1 billion to $1.03 billion also missed Wall Street's $1.05 billion estimate.

KeyBanc downgraded RDDT to ‘Sector Weight’ from ‘Overweight’ due to uncertainty around future growth. Raymond James reduced its price target to $150 from $205 but maintained ‘Strong Buy’. On Stocktwits, retail sentiment around the stock remained ‘extremely bullish’. 

Financing Costs Pressure IREN’s Infrastructure Expansion

IREN stock also reached a yearly low of $23.06 as investors reassessed companies developing high-performance computing and digital infrastructure. Data center construction requires a large upfront investment, making businesses in the sector vulnerable to high borrowing costs and tighter financing conditions.

B. Riley slashed its price target on IREN to $64 from $91 but retained its ‘Buy’ rating, still implying a 178% upside potential from the stock’s last close. The firm believes investors are assigning little value to IREN's future development pipeline. It also suggested that construction financing could provide temporary funding rather than become a permanent debt burden.

The company is scheduled to report its Q1 earnings on Nov. 5, and analysts see $221.71 revenue with a loss of $0.76 per share, according to Fiscal.ai. Retail sentiment around the stock dropped to ‘bearish’ from ‘bullish’. 

Mobileye Battles Automaker Delays 

Mobileye stock touched a record low of $5.76 after narrowing its 2026 revenue outlook to $1.995 billion - $2.02 billion. Investors are worried that Western automakers are taking longer to adopt its products, while competition and pricing pressures are increasing in the self-driving technology market.

TD Cowen downgraded MBLY to ‘Hold’ from ‘Buy’ and trimmed its price target to $7 from $8. The firm pointed to repeated delays in the rollout of SuperVision and Chauffeur products. Oppenheimer kept its ‘Outperform’ rating but lowered its price target to $16 from $27, saying the sharp drop in the stock could offer a good buying opportunity for long-term investors. 

Retail sentiment around the stock turned ‘neutral’ from ‘bullish’. 

So far this year, RDDT, IREN and MBLY stocks have declined between 36% and 60%.  

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