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- cross-posted to:
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Summary
Reddit shares have dropped 50% from their February peak, when the stock had soared over 500% from its $34 IPO price last March.
Much of the early enthusiasm came from AI-related deals allowing Reddit’s content to be used for training models, but recent doubts about long-term growth in the AI sector have dimmed that optimism.
Analysts remain skeptical and some call the stock “super overvalued,” noting Reddit still is not making any money.
Market uncertainty and early investor sell-offs continue to weigh on Reddit and the broader tech sector.
Who could have foreseen that banning all the highly active, long-term accounts in the same month would have a negative effect? Now they can live with all their bots, puns, Russian Karma Farmers, novelty accounts, and trolls.