We recently published a list of 10 Firms Mirror Wall Street Slump on Thursday. In this article, we are going to take a look at where Reddit Inc. (NYSE:RDDT) stands against other firms that mirrored Wall Street slump on Thursday.
Wall Street’s shares traded lower anew on Thursday, as investor sentiment continued to be dampened by President Donald Trump’s fresh tariffs on US imports.
The tech-heavy Nasdaq fell the heaviest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent.
The market decline was mainly weighed down by the performance of car manufacturers after Trump announced a 25-percent tariff on all vehicles imported beginning April 2.
Ten companies mirrored the broader market decline. In this article, we listed Thursday’s 10 worst performers and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.
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Reddit Inc. saw its share prices decline by 8.29 percent on Thursday to finish at $110.23 apiece after its website and mobile platform temporarily shut down in the afternoon.
According to the Downdetector website, it saw a huge number of users reporting trouble accessing the Reddit platform.
RDDT said its monitoring and investigation found that it suffered a degraded performance. Both platforms were restored shortly after.
Last week, RDDT earned mixed ratings from two investment firms, with Needham giving the company a “buy” rating, while Redburn gave the platform operator a pessimistic outlook, saying that its sustainability is a “gift” from Google.
Needham set a $220 price target for RDDT, more than double its last closing price. Meanwhile, Redburn believed that most of its users looking for answers to specific questions do not convert to RDDT log-in users, who are ultimately much more valuable.
Overall, RDDT ranks 7th on our list of firms that mirrored Wall Street slump on Thursday. 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 as promising as RDDT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
