Reddit’s initial public offering was launched on March 21, 2024, and already saw a surge of interest in its first days. Let’s take a look at how Reddit stock is doing now.
Reddit listed its stock (RDDT) on the US NYSE with an initial price of $34 apiece, which estimated its market value at $6.4 billion. On the very first day, that price shot up by more than 48% to reach a daily high of US$57.8 apiece. This growth continued in the following days, with the price at one point shooting above USD 65 per piece.
The optimism did not last long, however, and the breakthrough came on the weekend of 27-28 March, when the price fell below USD 50/head and even below USD 46/head in early April. Now the stock is slowly recovering and at the time of writing we can see a slight 2% increase.
The sharp declines were due to skepticism about the stock’s long-term prospects, and short trades have begun to close. Many analysts labeled the stock significantly overvalued, and worse, this attracted even more investors trading “short” looking to capitalize on just the price drop. As a result, RDDT managed to fall by more than 25% in two days.
The new target price for RDDT is estimated at $54, and analysts at New Street Research say they expect continued volatility until the company’s first earnings report.
