Reddit (NYSE:RDDT) stock is a hot topic on Wednesday following a warning from Hedgeye analyst Andrew Freedman about the social media company’s shares.
The Hedgeye analyst is warning clients that RDDT stock is going to see a major dip following its massive rally after recently going public. According to Freedman, this will result in the social media stock dropping by 50%.
Freedman believes that the hype around Reddit is starting to wear down following the company’s initial public offering (IPO) last week. This has him calling RDDT stock “grossly overvalued” and believing it will fall from its current price.
Adding to this, Freedman is expecting Reddit’s user growth to slow in the second half of 2024 and the first half of 2025. He says that this will place extra pressure on RDDT stock.
RDDT Stock Movement on Wednesday
It looks like the Hedgeye analyst’s warning is already having an effect on RDDT stock today. The company’s shares are down 13.4% as of Wednesday morning.
That fall comes alongside more than 9.5 million shares of RDDT stock changing hands this morning. However, this is still well below its daily average trading volume of about 31 million shares.
Investors who are searching for even more of the most recent stock market stories on Wednesday are going to want to stick around!
We are diving into all of the biggest stock market news that traders need to know about on Wednesday! That includes why Gamida Cell (NASDAQ:GMDA) stock is falling, Joann (NASDAQ:JOAN) stock preparing for suspension and earnings from Cellectar Biosciences (NASDAQ:CLRB). All of this news is available by checking out the links below!
More Stock Market News for Wednesday
- Why Is Gamida Cell (GMDA) Stock Down 82% Today?
- Joann (JOAN) Stock Plunges Ahead of Nasdaq Suspension
- CLRB Stock Earnings: Cellectar Biosciences Beats EPS for Q4 2023
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
