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Reddit Stock Plummets Amid Inflation Concerns and AI Valuation Pressures
Reddit Stock Plummets Amid Inflation Concerns and AI Valuation Pressures
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BTCCSquare news:
Reddit's stock (RDDT) tumbled 4.8% by midday ET, with an intraday drop of up to 10%, as bearish catalysts converged. The broader market weakness mirrored the decline, with major indices down 0.5%-1.2%.
Retail giants Home Depot and Target sparked inflation fears after signaling tariff-driven price hikes and softening consumer demand. While Reddit lacks direct retail exposure, the implications for Fed rate policy created a risk-off environment for growth stocks.
An MIT report further pressured valuations by questioning the sustainability of AI-related revenue streams. Reddit's data licensing deals for AI training—a key growth driver—now face heightened scrutiny as investors recalibrate tech valuations.
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