There were those who wondered how long the Reddit (NYSE:RDDT) initial public offering (IPO) moonshot would last. It turns out that it took around two days or so to see a pullback, as the social media company’s shares are down over 11% in Thursday afternoon’s trading. Worse, it’s approaching an ignominious milestone. The milestone in question is that Reddit is nearly back to its opening-day pricing of $47 per share.
While currently, it’s trading at just above $50, that’s about 10% shy of going below the opening price. It’s still significantly above the $34 that the IPO was priced at, and that’s still saying something, but for retail investors who couldn’t get in on the action, that’s a long way down.
In fact, Reddit stock’s progress has been nothing short of wild lately. It gained nearly 100% over what its IPO was priced at, but it quickly backtracked amid heavy losses at the company itself.
Going for Profit, Users May Prove Concerned
With profitability now likely front of mind at Reddit, thanks to investors wanting to see a return on their investment, it may not be much surprise that Reddit expanded its data-sharing agreement with Cision. Reddit was previously seen selling user data and content to Google (NASDAQ:GOOG) (NASDAQ:GOOGL) in a bid to help train large language models for use in artificial intelligence applications.
Now, selling data to Cision will help give companies more insight into how the public views their product lines. Not a bad deal, really, assuming users don’t mind having their data farmed for little benefit to them. With Hedgeye recently declaring Reddit a good short idea, getting profitable is about the only way to break any potential stigma before it can stick.
Is RDDT Stock a Good Stock to Buy Right Now?
A look at Reddit’s last five trading days shows that shares are on the upswing, though only just. Reddit shares are up 6.91% for the last five days, but they were up significantly more than that. A major rise two days ago plateaued and then started losing ground. Now, they’re almost back to where they were just five days ago.
