We recently compiled a list of the 10 Stocks That Underperformed Last Week. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against the other stocks.

Wall Street's main indices ended in a bloodbath on Friday, as investors soured on a flurry of macroeconomic factors such as concerns over a slowing economy and a sticky inflation that tempered buying appetite.

Friday’s finish saw the Dow Jones decline by 1.69 percent, the S&P drop by 1.71 percent, and the tech-heavy Nasdaq nosedive by 2.20 percent.

Ten companies, in particular, were heavily hit, registering mostly double-digit losses on a week-on-week basis.

We have listed 10 names that performed poorly last week and detailed the reasons behind their declines. Please note that shares performances were based on the companies’ closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week's biggest losers, we considered only the stocks with $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)

Shares of Reddit, Inc. (NYSE:RDDT) fell by 15.26 percent last week, finishing at $166.4 apiece on Friday from its $196.38 price registered on February 14, as investor sentiment was dampened by mixed earnings results, having been plunged to further losses last year.

In full-year 2024, Reddit, Inc. (NYSE:RDDT) said net losses expanded 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.

Following the figures, analysts at Piper Sandler increased Reddit, Inc. (NYSE:RDDT)’s price target by 4.7 percent to $220 from $210 previously while maintaining an overweight rating on the stock following a rebound in its Feed audience from a decline in December last year.

Overall RDDT ranks 8th on our list of the stocks that underperformed last week. 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 that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

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