Mon May 19 13:20:00 UTC 2025: ## Reddit Shares Tumble as Traders Book Profits, Eye AI Investments

**Wall Street, NY -** Reddit Inc. (NYSE:RDDT) saw its stock price plunge 9.36% on Thursday, closing at $113.59, as investors cashed in after a five-day rally. The dip comes amidst a mixed day for Wall Street, with the Nasdaq posting losses while the Dow Jones and S&P 500 edged upward.

Analysts attribute Reddit’s recent surge to “meme moves,” suggesting the gains were not necessarily based on fundamental strength. Despite the recent downturn, Reddit has shown strong financial performance, reporting a Q1 net income of $26.2 million, a significant improvement from the $575.1 million net loss in the same period last year. Revenue also saw a substantial increase, jumping 61% year-over-year to $392.4 million.

The company anticipates continued growth in Q2, projecting revenues between $410 million and $430 million and an adjusted EBITDA range of $110 million to $130 million.

Recent news also highlights Reddit co-founder Alexis Ohanian’s acquisition of a 10% stake in the Women’s Super League Chelsea Football Club. While this venture doesn’t directly impact Reddit’s financial performance, analysts believe Ohanian’s broader presence in other industries could indirectly benefit the platform through increased visibility.

Despite the positive financial indicators, Reddit ranks 4th on a list of stocks being abandoned by traders. According to Insider Monkey, the report compiler, investors are shifting their focus towards Artificial Intelligence (AI) stocks, viewing them as having greater potential for faster returns. The report highlights a specific, less well-known AI stock trading at a low earnings multiple as a potentially more promising investment.

*This article is a summary and interpretation of a report originally published by Insider Monkey.*

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