cross-posted from: https://lemmy.world/post/27610195
Summary
Reddit shares have dropped 50% from their February peak, when the stock had soared over 500% from its $34 IPO price last March.
Much of the early enthusiasm came from AI-related deals allowing Reddit’s content to be used for training models, but recent doubts about long-term growth in the AI sector have dimmed that optimism.
Analysts remain skeptical and some call the stock “super overvalued,” noting Reddit still is not making any money.
Market uncertainty and early investor sell-offs continue to weigh on Reddit and the broader tech sector.
So price went up 5 times and halved? Isn’t it still up by a lot? Weird misleading headlines.
Yes it is still wildly overvalued.
Anyone buying ‘the dip’ in any stock right now is delusional. This ain’t a dip it’s a downward spiral.
Yep I really can’t see them coming back from this
I’ve seen like 10 of these shitposts in the past few weeks. Like the fucking market is down 5% overall today yet idiots act as if it’s somehow confined to Reddit. Reddit sucks but like…this community is just a fucking joke.