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