Reddit Inc. (RDDT) shares took a hit on Thursday morning, plummeting 5.04% in pre-market trading. The social media platform's stock decline comes as analysts initiate coverage on the company with neutral ratings and a mixed outlook.
According to FactSet data, analysts have an average rating of "overweight" on Reddit, with a mean price target of $187. However, Seaport Global initiated coverage on the stock with a "neutral" rating on Thursday morning, likely contributing to the sharp sell-off.
Additionally, Reddit's stock was one of the most discussed names on the popular WallStreetBets subreddit, which has been known to influence stock movements. While some other meme stocks like BigBear.ai Holdings saw gains in pre-market trading, Reddit's shares were trading lower amid the mixed sentiment from analysts and retail investors.
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