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Why Reddit Stock Is Plummeting Today

TheMotleyFool

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Reddit (NYSE: RDDT) stock is getting hit with a sharp valuation decline on Wednesday. The social media company's share price was down 4.8% at noon ET and had fallen as much as 10% earlier in trading. At noon, the S 500 was down 0.5% and the Nasdaq Composite was down 1.2%.

Reddit is under pressure due to multiple bearish catalysts today. In addition to recent quarterly reports from major U.S. retailers that have raised alarms about the outlook on inflation, a report from the Massachusetts Institute of Technology (MIT) is causing investors to become more cautious about valuations for artificial intelligence (AI) stocks.

Image source: Getty Images.

Source Fool.com

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