RDDT: Reddit Stock Can’t Get Off the Volatility Train After Another Double-Digit Drop

Social media platform is feeling the mood swings from investors while billions of market cap swirl around in gut-wrenching gamble—uh—price discovery action.

Key Points:

• Reddit shares dropped 11% Thursday.
• Execs disclose big share sales.
• Reddit never made a profit.
• Reddit stock RDDT is getting swayed by traders on both sides as markets are trying to figure out how much exactly the company is worth. Following a 16% drop from Tuesday’s high point to low point, the buzzing chat-room platform wiped out 11% from its valuation on Wednesday.
• Internal selling earlier in the week surfaced yesterday and pressured the share price. Chief executive Steve Huffman dumped 500,000 shares on Monday at an average price of $32.30, cashing out $16.1 million. Chief operating officer Jennifer Wong disclosed she sold 514,000 shares for just over $16.6 million.
• Reddit listed 22 million shares to the public last Thursday when the stock spiked 48%, slapping Reddit with a whopping $9.5 billion market cap. Now, the post-IPO rally is getting challenged as billions of dollars swirl around in search of the right price for a 19-year old company which never turned a profit.