Reddit shares fell nearly 6% on Friday as market concerns grew over a potential controversial new app from Meta Inc.

　　The platform, called "Forums," could provide internet users with an alternative way to gather and create discussion groups.

　　Forums, initially launched as a beta app for Apple on iOS, is part of Facebook Groups. Truist analysts wrote in a report Friday that this move is "the company's attempt to compete with Reddit as the online forum for public discussion" and "represents a new threat."

　　Despite strong online advertising, Reddit's stock has fallen nearly 40% this year. In April, the company reported its seventh consecutive quarter of sales growth, exceeding 60%. Meanwhile, Meta reported revenue growth of 33% in its latest quarter.

　　"If this move succeeds, the risk is that Reddit's usefulness to casual users with lower loyalty to the Reddit community who just want answers will gradually decline," Truist analysts wrote. They recommend buying the stock. "This will have a greater impact on non-core Reddit users than on regular users who log in directly."

　　Reddit has not yet responded to the report.

　　Meta (then known as Facebook) created a standalone Facebook Groups app over a decade ago, but shut it down in 2017. The service still exists as part of Facebook and, like Reddit, hosts discussion groups on various topics.

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