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We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against the other stocks.
Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due to investor caution brought about by key economic uncertainties.
Wall Street’s main indices all fell in the red, with the tech-heavy Nasdaq recording the steepest downfall with 4 percent.
The S&P 500 declined by 2.7 percent, while the Dow Jones dropped by 2.08 percent.
We have identified the 10 worst-performing companies on Monday and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.
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Reddit, Inc. (NYSE:RDDT)
Reddit, Inc. (NYSE:RDDT) fell the hardest on Monday, losing 19.92 percent to end at $107.29 apiece, as investors sold off positions to minimize risks from broader economic uncertainties.
Monday’s decline marked the third consecutive day of losses for Reddit, Inc. (NYSE:RDDT), which began last week following an insider selling of none other than its chief accounting officer, Michelle Reynolds, disposing of worth $1.88 million in shares at a price ranging from $151.35 to $164.31 apiece.
Following the sale, Reynolds’s ownership in the company now stands at 48,418 shares.
Amid the lack of a clear reason for the sell-off, investors will be closely looking out for cues on broader trends and changes within the company.
Last year, Reddit, Inc. (NYSE:RDDT) saw net losses expand by 433 percent to $484.27 million from the $90.82 million registered in 2023, despite revenues growing by 62 percent to $1.3 billion from $804 million.
However, it recorded a 283.7-percent jump in its net income for the fourth quarter last year at $71 million versus $18.5 million in the same period a year earlier. Revenues for the quarter also surged by 71 percent to $427.7 million versus $249.8 million.
Overall RDDT ranks 1st on our list of Monday's worst performing stocks. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.