Reddit Tumbles After Hedgeye Names It a Short Idea and Sees 50% Slump
- Reddit surged 48% in its first day of trading last week
- Hedgeye says the stock could fall 50% from Tuesday’s close
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Reddit Inc. shares notched 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 fall about 50%.
The stock slipped 11% Wednesday to end the trading session at $57.75 a share, its lowest closing level since March 22. Reddit shares had been on a tear since the company’s March 21 initial public offering, gaining more than 90% to an all-time high close of $65.11 on Tuesday.