Internet giants such as Google, Meta, and Reddit could face the loss of key legal protections from liability lawsuits with the 2027 expiration of "Section 230," said a report.
Shares of online community and discussion platform Reddit (NYSE:RDDT) fell 11.9% in the afternoon session after markets seemed to have caught "tariff/trade war fever" once again (Nasdaq down 1.9%, S&P 500 down 1.2%) amid broader geopolitical anxiety. The volatility was perhaps also related to uncertainty surrounding the Fed's rate decision to be announced later in the week. The consensus estimate was for the Fed to keep interest rates at the range of 4.25%-4.5%.
As of March 18, 2025, Reddit, Inc. (Nasdaq: RDDT) is experiencing significant turbulence in its stock price, reflecting broader market dynamics and specific concerns about the company’s valuation and growth prospects. At 10:28:10 AM EDT, RDDT was trading at $111.66, down $13.91 or 12.45%
David Habiger, who serves as the Chair of Reddit’s board, bought 780 shares of the social media company last Thursday at a weighted average price of $126.07.
The stock market experienced a notable rise on Friday, with the S&P 500 gaining over 0.65% to 5,675.12 and the Nasdaq Composite climbing 0.3% to 17,808.66.
Redburn Atlantic said Reddit’s significant premium versus that of social e-commerce company Pinterest would be viewed as “far too lofty,” especially as Reddit’s growth rates start to stabilize.
In recent years, Reddit (NASDAQ:RDDT) has emerged as a surprising player in the world of finance. Subreddits like r/WallStreetBets have gained massive attention, especially after the 2021 GameStop stock surge, where retail investors banded together to drive up the price of a struggling retailer’s shares. The platform’
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
Loop Capital analyst Alan Gould estimates that Reddit's revenue and earnings before interest, taxes, depreciation, and amortization will grow 36% and 87%, respectively, in 2025.
