Meta has launched a new app called Forum on the iOS App Store, challenging Reddit's core business of online community discussions. The app, which repackages Facebook Groups into a standalone platform, was quietly released around May 22, leading to a 6% drop in Reddit (RDDT) shares as investors reacted to the potential competition. Forum offers pseudonymous usernames and an AI-powered "Ask" feature, with group admins having access to real identities for moderation. The app's release, first spotted by analyst Matt Navarra, is currently limited to the United States and is being treated as a testing product by Meta. Analysts view this move as a strategic attempt by Meta to leverage its existing Facebook Groups to compete with Reddit's niche community space. While Reddit's stock reaction may seem premature, the impact could grow if Meta decides to expand Forum beyond its current testing phase.