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Reddit's 50% Stock-Price Plunge Fails to Entice Buyers as Growth Slows
Though it's stock price is still up 200% from its IPO in March of 2024 — last week Reddit's stock had dropped nearly 50% since February 7th. And then this week, it dropped another 10%, reports Bloomberg, citing both the phenomenon of "volatile technology stocks under pressure" — but a...
Though it's stock price is still up 200% from its IPO in March of 2024 — last week Reddit's stock had dropped nearly 50% since February 7th.And then this week, it dropped another 10%, reports Bloomberg, citing both the phenomenon of "volatile technology stocks under pressure" — but also specifically "the gloomy sentiment around Reddit..." The social media platform has struggled to recover since an earnings report in February showed that it is failing to keep up with larger digital advertising peers such as Meta Platforms Inc. and Alphabet Inc.'s Google, which have higher user figures. One analyst opened coverage of Reddit this month with a recommendation that investors sell the shares, in part due to the company's heavy reliance on Google. Some of the enthusiasm was due to a series of deals in which Reddit was paid to allow its content to be used for training artificial intelligence models.
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