Why Reddit Stock Is Sinking This Week
Since last Friday, shares of the popular online content forum Reddit (NYSE: RDDT) are trading 14% lower as of 11:38 a.m. ET Thursday. Analysts have grown more bearish on the company's prospects this year, and CEO Steve Huffman sold $15.8 million of stock recently.Reddit's stock has performed extremely well since going public in March of 2024. It exploded from $46 on its first day of trading to a peak of $225 just this February. However, the sell-off has hit it hard. Now trading around $110, the stock is still up nearly 140% since going public. But in recent months, analysts have grown concerned about the company's reliance on Google.Redburn Atlantic analysts James Cordwell and Joseph Barker wrote in a research note earlier this week, "The strong growth of the past 18 months has been predominantly the result of Google changing its search algorithm to favor Reddit, but there is clear evidence that the boost to traffic and visibility from these changes is hitting a ceiling, with a risk that what Google giveth, it will taketh away." Continue reading
Since last Friday, shares of the popular online content forum Reddit (NYSE: RDDT) are trading 14% lower as of 11:38 a.m. ET Thursday. Analysts have grown more bearish on the company's prospects this year, and CEO Steve Huffman sold $15.8 million of stock recently.
Reddit's stock has performed extremely well since going public in March of 2024. It exploded from $46 on its first day of trading to a peak of $225 just this February. However, the sell-off has hit it hard. Now trading around $110, the stock is still up nearly 140% since going public. But in recent months, analysts have grown concerned about the company's reliance on Google.
Redburn Atlantic analysts James Cordwell and Joseph Barker wrote in a research note earlier this week, "The strong growth of the past 18 months has been predominantly the result of Google changing its search algorithm to favor Reddit, but there is clear evidence that the boost to traffic and visibility from these changes is hitting a ceiling, with a risk that what Google giveth, it will taketh away."
