I think it started bc Elon bitched about the white people twitter sub was inciting violence and it shut down for a bit and now with saying Luigi
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It's just FUD, diamond hands ππ€, to the moon π π, etc etc
/s just in case
This is Macro scale issue with whole US stock market not an specific Reddit Issue I Believe
I've checked some companies and that seems so, though reddit seems to be the only one that lost ~40% value in one month
Tesla and DJT have lost similar amounts in the last month.
in my experience, reddit advertising has been idiotic for several years.
I go to a basketball subreddit. there are no relevant ads about basketball. not local team tickets, not streaming services, basketball equipment, basketball merch, or even a video game.
I go to a subreddit for a tv show. it's similar. There are no ads or links to buy dvds or tickets to a convention or anything related to the show.
They could totally target advertising based on subreddit and they don't.
I canβt believe for as long as Iβve been on Reddit I never realized that point you just made. Good shit dude.
Is this because they think they're more likely to get a more valuable click by showing you targeted ads from the highest bidder?
Targeted ads always seem to be so poorly targeted.
Might just be drop from a peak, but lets hope it keeps dropping.
General rule for posting stock prices: sometimes things are obvious when you zoom out a bit.
In this particular case, Reddit stock price is still up several percentage points from the Trump rally that affected just about every tech stock after 2024-10-30 about. Same applies to other stocks like Tesla.
So at this point it's nothing more than a return to normal. No need to attribute anything more to it. But sure, if this descends keeps going for some time more, it'll be different.
I'm not experienced with stock markets, but is the concept of 'normal' really relevant, especially after a whole quarter? What factors would give it a tendency to return to the prior state?
Stock markets are very close to brownian motion. There is no return to normal.
There is a market portfolio (people use the s&p500 as a proxy for this) so returns of sectors or individual stocks should be made relative to this.
Interesting! I didnt know that so many tech stocks were impacted on that date. Is there anything special about the start date of reddit's stock decline? Or was it simple a "straw that broke the camel's back" situation, where some insignificant thing started the downward trend?
Stocks overall took a downturn when investors finally realized Trump wasn't bluffing bout his tariff plans