Reddit Stock Crashes Again. Is the Stock a Buy on the Dip or a Value Trap?

Reddit's stock plunged 29% after Q3 earnings despite strong revenue growth of 53% and doubled profitability. However, user growth is slowing significantly due to Google's AI Overviews reducing traffic to Reddit, with the company warning of potential low double-digit daily active user declines in Q4. While the stock appears cheap at a forward P/E below 9.5x, it may be a value trap given structural headwinds from AI and search algorithm changes.