Reddit shares tumble 15% as hedge fund predicts slump

The shares of the social media firm made their stock market debut last week

Reddit tapped enthusiasm for all things artificial intelligence, which was at the centre of the company’s IPO. Picture: PA

Shares in Reddit notch their largest one-day drop since the social media company’s trading debut after Hedgeye Risk Management released a report adding it as a short idea and saying it should trade about 50% below current levels.

The shares fell as much as 15% at one stage in the latest trading session, to its lowest level since March 22. Reddit shares, under the RDDT ticker code, have been on a tear since the company’s March 21 initial public offering (IPO), where it surged 48% in its first day of trading after pricing at $34 per share.