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- Reddit (NYSE:RDDT) fell on Thursday, losing almost 10%as the social network’s shares approached the opening price of last week’s trade.
- Shares were at $52.40 shortly after 11:15 a.m. EST, about 10% away from the $47 opening. last week. Reddit priced its IPO at $34 per share, raising $748 million in the process.
- The newly public company has been on a wild ride since going public. As of Tuesday, the stock had gained nearly 100% since the IPO, despite losing $69.3 million and $108.4 million on an adjusted EBITDA basis in 2023 and 2022, respectively.
- Research firm Hedgeye started Reddit as a new short idea on Wednesday, with analyst Andrew Freedman saying the hype is “starting to wear off.” There’s about 50% downside for the stock based on the original IPO price of $47, Freedman said.