{"id":58040,"date":"2025-03-28T20:00:39","date_gmt":"2025-03-28T20:00:39","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/03\/28\/reddits-50-plunge-fails-to-entice-buyers-as-growth-slows\/"},"modified":"2025-03-28T20:00:39","modified_gmt":"2025-03-28T20:00:39","slug":"reddits-50-plunge-fails-to-entice-buyers-as-growth-slows","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/03\/28\/reddits-50-plunge-fails-to-entice-buyers-as-growth-slows\/","title":{"rendered":"Reddit\u2019s 50% plunge fails to entice buyers as growth slows"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">Information Technology<\/li>\n<li class=\"breadcrumbs__item\">Investor<\/li>\n<li class=\"breadcrumbs__item\">News<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">Reddit faces additional scrutiny because of its relatively short tenure on Wall Street<\/p>\n<div class=\"article-meta\">\n<div class=\"wire-published-by\">\n<p class=\"visually-hidden\">Author of the article:<\/p>\n<p><\/p>\n<div class=\"wire-published-by__author-container\">\n<p>Bloomberg News<\/p>\n<p>Carmen Reinicke<\/p>\n<\/div>\n<\/div>\n<p><span class=\"published-date__since\">Published Mar 28, 2025<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"feda1d60-2b14-4181-be8d-36f288a913a7\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=webp&amp;sig=A3SNuQVyTUyHtNWqKQ4LXg,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=webp&amp;sig=hJkUwv-YVHALMB3nZG2hZA 2x\" type=\"image\/webp\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=jpg&amp;sig=7KKWFJDdolpXJ8VsvDnrjw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=jpg&amp;sig=vWfQNJBVHktihfJf_ljQ_A 2x\" type=\"image\/jpeg\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=webp&amp;sig=a-9CS2r_7vny0G68m9-4KA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=webp&amp;sig=FdZuq0fE02rajYNp4zl7vg 2x\" type=\"image\/webp\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=jpg&amp;sig=EX-0fNzFOwpdcGNZjGaeDw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=jpg&amp;sig=rIFNYw89j1Q328L3jgLk6g 2x\" type=\"image\/jpeg\"><source media=\"(max-width: 767px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;type=webp&amp;sig=4AFdUEVwRJhjdRNavc54Kg,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=576&amp;h=432&amp;type=webp&amp;sig=X9ay-HVAE_-vZl_Bb4iCQQ 2x\" type=\"image\/webp\"><img loading=\"lazy\" decoding=\"async\" alt=\"At its February peak, Reddit\u2019s stock had risen over 500 per cent from the US$34 initial public offering price last March.\" class=\"featured-image__image type:primaryImage\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;sig=Y6Dd2XyRB7ACCWHpqKmJfg\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;sig=Y6Dd2XyRB7ACCWHpqKmJfg,&#10;                    https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0329-mg-reddit.jpg?quality=90&amp;strip=all&amp;w=576&amp;h=432&amp;sig=KOEiDgxKxqofx5NTNbW4qA 2x\" height=\"750\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">At its February peak, Reddit\u2019s stock had risen over 500 per cent from the US$34 initial public offering price last March.<\/span> <span class=\"credit\">Photo by Yuki Iwamura\/AP Photo\/Postmedia files<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">The gloomy sentiment around Reddit Inc. has failed to dissipate after its shares fell 50 per cent from a February high, with volatile technology stocks under pressure.<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">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.\u2019s Google, which have higher user figures. Reddit\u2019s outlook seemed precarious because its United States traffic took a hit from a change in Google\u2019s search algorithm.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment5020769460855079955166932146061312\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<div class=\"article-block article-block-bg 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on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__anonymous\">\n<p>REGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__registration_only hidden\">\n<p>THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account<\/li>\n<li>Share your thoughts and join the conversation in the comments<\/li>\n<li>Enjoy additional articles per month<\/li>\n<li>Get email updates from your favourite authors<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<div class=\"identity-screen m-x-0 p-x-0 col-xs-12 col-md-6 flex-justify-center flex-align-center\" aria-live=\"assertive\">\n<section class=\"sail\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-sailthru-personalization-engine=\"\" data-sailthru-personalization-engine-component=\"\"\/>\n<div class=\"m-x-0 p-x-0 col-xs-12 col-sm-6 col-md-12 flex-align-justify-center\" data-auth-component=\"\" id=\"auth-screen-form\">\n<div class=\"identity-screen-form--active w-full flex-align-justify-center\">\n<div class=\"identity-screen-form identity-screen__content w-full\">\n<h2 class=\"blocker-title\">Sign In or Create an Account<\/h2>\n<p><span class=\"identity-divider__line\"\/><span class=\"identity-divider__text\">or<\/span><span class=\"identity-divider__line\"\/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<footer class=\"identity-footer identity-screen__content m-x-0 p-x-0 col-sm-6 col-md-12\"\/><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>In recent weeks, the short interest in Reddit \u2014 a proxy for the volume of bets against the company \u2014 has ticked up, and forecasts for the company\u2019s share price have fallen. One analyst opened coverage of Reddit this month with a recommendation that investors sell the shares, in part due to the company\u2019s heavy reliance on Google. Reddit shares fell more than five per cent in intraday trading Friday.<\/p>\n<p>\u201cIt\u2019s been super overvalued,\u201d Bob Lang, founder and chief options analyst at Explosive Options said of Reddit. \u201cTheir growth rate is very strong, but they still are not making any money.\u201d<\/p>\n<p>Reddit had a GAAP earnings per share loss of US$3.33 in 2024, but reported two consecutive quarters of positive GAAP EPS in the second half of the year.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot12 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page None background--primary-light-gradient\" aria-labelledby=\"FPInvestor9016247535174305197355855847096320\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_Investor\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" alt=\"FP Investor Banner\" loading=\"lazy\" src=\"https:\/\/dcs-static.gprod.postmedia.digital\/18.3.3\/websites\/images\/newsletters\/icon-fp-investor.svg\"\/><\/div>\n<div>\n<p>Investor<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Canada&#8217;s best source for investing news, analysis and insight.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_Investor\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Investor will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_Investor\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment3211287008597038826496289704771584\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">To some degree, Reddit\u2019s problems are the same ones facing all the tech companies that tend to rise more than the broader market but also fall faster during moments of turmoil. The Nasdaq 100 is in correction territory, down more than 10 per cent from a recent peak, and the biggest technology stocks are slumping as investors are finding few reasons to snap up risk assets at a discount. Even two back-to-back positive days for the Nasdaq 100 earlier this week weren\u2019t enough to meaningfully boost confidence.<\/p>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=6g0KVgM-1LprNhWdjIuj5g,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=pZqBf-ko5TyNOoMLHvLr7w 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=irAPbaAN10tkireWsBvaBQ,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=mP7l5CL0kK55CoUjpdQyTA 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=6O9-Xa_I0tAFXwrJPnTqZw,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=Hmt2k9IjmHuvOKNvtZJVPQ 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=RCUO1JWY6awYlc3AheOCdA,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=JYzWW8S6lUJK62N_vSCeeQ 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=z8or7EUyziDTvT1qj8f5NQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=UieV23d4WRBfWROSkOysqQ 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Reddit Drawdown Outpaces Broader Market | Shares are well below a February high\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=288&amp;sig=U7d_H4HcOqjjmkPhrjQuRw\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=288&amp;sig=U7d_H4HcOqjjmkPhrjQuRw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=90&amp;strip=all&amp;w=576&amp;sig=7yEm7KX4RPvIiR4fhi5haA 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/qw_Reddit_Drawdown_Outpaces_Broader_Market__Shares_are_well_bel.jpg?quality=5&amp;strip=all&amp;w=100&amp;sig=QaMXjbB-YYoG6y35--yw4Q\" height=\"562\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>\u201cThese relief rallies are not an indication that things are great. They\u2019re an indication that a lot of people don\u2019t know what\u2019s coming,\u201d Francisco Bido, senior vice president and portfolio manager at F\/M Investments, said of the broader market\u2019s movements. \u201cUnless I see this thing reverse in a really healthy investment environment, and a lot of clarity when it comes to the tariff situation and all that, then I\u2019m not buying it yet.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment1404971186048691234793662168694784\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>At its February peak, Reddit\u2019s stock had risen over 500 per cent from the US$34 initial public offering price last March. 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. More recently, though, there have been questions about the long-term growth prospects for the artificial intelligence industry.<\/p>\n<p data-async=\"\">Reddit faces additional scrutiny because of its relatively short tenure on Wall Street. As the earliest investors have reached the end of their lockup periods, they\u2019re free to unwind stakes. This could put further selling pressure on the stock, which is still up 200 per cent since the IPO.<\/p>\n<p>On Wall Street, the average price target from analysts has fallen to about US$195 from US$207 a month ago. That still offers a roughly US$85 upside from where shares closed following Thursday\u2019s eight per cent slump. Only three analysts recommend that investors sell, in comparison to the 15 with a buy rating and seven with a hold.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_5\">\n<section aria-describedby=\"advertisment4030610499605283815724213583478784\" class=\"ad\">\n<p>Advertisement 5<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-5\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"5\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-5\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>In a note on March 20, Guggenheim analysts led by Michael Morris lowered their price target on the stock to US$170 from US$210 to reflect the contraction of multiples across the digital ad peer group. Still, Morris\u2019s team reiterated their optimism.<\/p>\n<p>\u201cOur buy rating reflects our confidence that Reddit is in the early stages of executing on a robust, multi-year user and monetization growth opportunity,\u201d Morris wrote, adding that he sees potential for user numbers to begin growing again in the first quarter of 2025, with even more opportunity ahead as the company expands in international markets. Morris also said that the domestic user challenges seen in the last quarter from the change in Google\u2019s algorithm \u201clargely abated.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_6\">\n<section aria-describedby=\"advertisment8237319687987261306782640347545600\" class=\"ad\">\n<p>Advertisement 6<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-6\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"6\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-6\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<section aria-labelledby=\"moreTopicLabel6928768312639388221040420536188928\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" musk=\"\" has=\"\" been=\"\" buying=\"\" up=\"\" x=\"\" shares=\"\" near=\"\" initial=\"\" price=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"X\u2019s business has struggled for much of Musk\u2019s tenure as owner, as many advertisers fled the service, or paused their spending, shortly after his takeover.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0319-mg-x.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=HQJR9jAXC5EXsheEtpCnQw\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0319-mg-x.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=Kt09BcMsbWYLz_zVOH4OHw\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0319-mg-x.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=HQJR9jAXC5EXsheEtpCnQw, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0319-mg-x.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=oe78IVr6P3x92Z6wcnGISg 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0319-mg-x.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=pE2SKT7QElg75jSqqS6BjA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Elon Musk has been buying up X shares near initial price<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" takes=\"\" steps=\"\" to=\"\" pull=\"\" in=\"\" billions=\"\" from=\"\" passive=\"\" funds=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Shopify\u2019s move represents, in at least one way, a step up for Canadian stocks. Out of the 520 companies earning a spot in the Nasdaq 100 this century, just three have been domiciled in Canada.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0326-mg-shopify.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=TsytN2S0h8LwPTIRENKffA\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0326-mg-shopify.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=C1wSCJQm6A7ItgL7LyLO6w\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0326-mg-shopify.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=TsytN2S0h8LwPTIRENKffA, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0326-mg-shopify.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=Lm1MpvHL3t6sz7vrdSuBtQ 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/03\/0326-mg-shopify.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=86Cf7oWbRT27s0I9veRpeQ 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Shopify takes steps to pull in billions from passive funds<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" shares=\"\" double=\"\" as=\"\" kitty=\"\" shows=\"\" million=\"\" bet=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"The Gamestop company logo is displayed on a screen as traders work on the floor of the New York Stock Exchange during morning trading on March 22, 2023 in New York City. \" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/06\/0604-bc-gamestop.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=LZVyEep0ZlH8ZMrs2bZtwQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/06\/0604-bc-gamestop.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=sw3Oakt8YEP2-yK-l7Mm2A\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/06\/0604-bc-gamestop.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=LZVyEep0ZlH8ZMrs2bZtwQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/06\/0604-bc-gamestop.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=Pfy6trL-oQ0eIG3eMMB6Mw 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/06\/0604-bc-gamestop.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=UigHVrGSiKresHs99Mxi7w 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">GameStop shares double as &#8216;Roaring Kitty&#8217; shows $116 million bet<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>Vince Lorusso, president and portfolio manager at Clough Capital Partners LP, is still bullish on the company. He may, though, look for opportunities to sell in the short term because of the uncertainty hanging over the markets.<\/p>\n<p>\u201cAlong the way, if there\u2019s going to be volatility and entry points or places to take some profits, we\u2019ll look to do that,\u201d he said.<\/p>\n<p><em>\u2014With assistance from David Watkins and Stephen Kirkland.<\/em><\/p>\n<p data-async=\"\">Bloomberg.com<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Reddit\u2019s 50% plunge fails to entice buyers as growth slows<\/a><br \/>\n<br \/>2025-03-28 20:00:39<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Information Technology Investor News Reddit faces additional scrutiny because of its relatively short tenure on Wall Street Author of the article: Bloomberg News Carmen Reinicke Published Mar&#8230;<\/p>\n","protected":false},"author":2,"featured_media":58041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-58040","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/58040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=58040"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/58040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/58041"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=58040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=58040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=58040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}