8 Red Days In A Row: Reddit Stock Is Down 41%
Shares of Reddit (RDDT) have closed lower in each of the last 8 sessions, a cumulative decline of 41.1%. That erased about $12.3 billion from the company’s market value, which now stands at about $17.7 billion. The stock closed at $91.73 on Friday, October 30, its lowest close of the past year.
RDDT Versus The S&P 500
Returns for RDDT and the S&P 500 over the streak and the periods around it, all ending Friday, October 30 and including dividends:
| Return Period | RDDT | S&P 500 |
|---|---|---|
| 1 Day | -29.2% | -1.8% |
| 8 Days (Current Streak) | -41.1% | -1.7% |
| 1 Month (21 Trading Days) | -38.7% | -1.1% |
| 3 Months (63 Trading Days) | -40.7% | 0.0% |
| Year To Date | -60.1% | 11.8% |
| 1 Year (252 Trading Days) | -56.5% | 11.3% |
A Stock-Specific Slide, Or A Market Move?
The market explains little of this: the S&P 500 lost 1.7% over the same 8 sessions, including dividends, against Reddit’s -41.1%. No other S&P 500 stock is currently on a losing streak of 8 days or longer. Over the past three months the stock is down 40.7%, a window that includes the streak; over the other 55 sessions of that window it was essentially flat (+0.6%).
Is The Business As Weak As The Stock?
On the fundamentals, revenue grew 62.2% over the last twelve months, against a median of 6.8% for S&P 500 Communication Services stocks; its operating margin is 29.4%, versus a median of 20.4%; and the stock trades at 17.8 times trailing earnings against a median of 17.4. The read is mixed.
If the drop has you weighing an entry, resist buying on price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still hold up.
Prefer the theme to the single name? A communication services ETF like XLC holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
A Slide Like This Is Why Diversification Exists
Watching one stock fall day after day is the clearest lesson the market teaches about single-name risk. Whether this particular decline is an opportunity or a warning, the deeper point is the same: no one name should be able to do this to your portfolio.
The Trefis High Quality (HQ) Portfolio is built on that principle: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Study the slide; spread the risk.