Angelica Ballesteros
2 min read
In This Article:
We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other stocks that crashed yesterday.
Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.
Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.
Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
Copyright: gyddik / 123RF Stock Photo
Reddit Inc. snapped a five-day winning streak on Thursday, dropping by 9.36 percent to end at $113.59 apiece as investors booked profits following the consecutive days of price surge, which analysts said were just buoyed by “meme moves.”
In recent news, Reddit, Inc. (NYSE:RDDT) has been linked to its co-founder’s recent acquisition of a 10-percent stake in the Women’s Super League, Chelsea Football Club.
While the acquisition does not directly impact the trading performance of Reddit, Ohanian’s presence in other industries could support further visibility for Reddit, Inc. (NYSE:RDDT).
During the first quarter of the year, Reddit, Inc. (NYSE:RDDT) swung to a net income of $26.2 million from a $575.1 million net loss in the same period last year.
Revenues also jumped by 61 percent to $392.4 million from $243 million year-on-year.
For the second quarter of the year, Reddit, Inc. (NYSE:RDDT) is targeting to hit between $410 million and $430 million in revenues, with an adjusted EBITDA range of $110 million to $130 million.
Overall, RDDT ranks 4th on our list of stocks that traders flee today. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
