We recently compiled a list of the 10 Stocks Trade Weaker on Disappointing News. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against the other stocks.

Wall Street finished the trading week on a strong note, with all major indices recording gains as investors digested the latest US jobs data, which fell short of expectations.

The tech-heavy Nasdaq posted the largest gain with 0.70 percent, followed by the S&P 500 with 0.55 percent, and the Dow Jones by 0.52 percent.

Ten companies across mixed sectors bucked a wider market optimism, ending Friday in the red territory. In this article, we have listed the 10 worst-performing names and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A content marketing website showing the audience reach of the company's products.

Reddit, Inc. (NYSE:RDDT)

Reddit, Inc. (NYSE:RDDT) dropped its share prices for a second day on Friday, slashing 11.11 percent to end at $133.98 apiece following news that its chief accounting officer, Michelle Reynolds, disposed of a significant portion of her holdings in the company.

In a regulatory filing, Reddit, Inc. (NYSE:RDDT) said Reynolds sold shares amounting to $1.88 million at a stock price ranging from $151.35 to $164.31 apiece.

Following the sale, Reynolds’s ownership in the company now stands at 48,418 shares.

Amid the lack of a clear reason for the sell-off, investors will be closely looking out for cues on broader trends and changes within the company.

Last year, Reddit, Inc. (NYSE:RDDT) saw net losses expand by 433 percent to $484.27 million from the $90.82 million registered in 2023, despite revenues growing by 62 percent to $1.3 billion from $804 million.

However, it recorded a 283.7-percent jump in its net income for the fourth quarter last year at $71 million versus $18.5 million in the same period a year earlier. Revenues for the quarter also surged by 71 percent to $427.7 million versus $249.8 million.

Overall RDDT ranks 3rd on our list of Friday's worst performers. 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 more promising than 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.