Reddit’s Rollercoaster Ride: Analyzing the Sudden Stock Plunge
Reddit’s shares are currently plummeting nearly 25 percent over two days, post-IPO. Hedgeye Risk Management’s report deemed the stock “grossly overvalued,” predicting a 50 percent decline. Priced at $49, Reddit’s journey reflects investor hype meeting reality. The company, yet to profit in its 20-year run, attempted to leverage AI in its IPO. With a history of losses, including $90.8 million in 2023, Reddit’s financial instability is no shocker. Its future depends on attracting users and boosting revenue post-IPO.