Community Platform Loses Over 2 Trillion Won in a Day: What Bad News Emerged?

(REDDIT INC: RDDT) shares closed at $210.13 on the New York Stock Exchange on January 21, plunging 6.76% in a single day. Its market capitalization fell to about $28.9 billion (roughly ₩38 trillion), wiping out approximately $1.8 billion (₩2.4 trillion) in value over the course of the session. Trading volume reached about 3.07 million shares.

The stock has come under pressure following a string of insider sales, beginning with CEO Steve Huffman’s sale of 18,000 shares on January 20 and continuing into the 21st. At the same time, a Wall Street report highlighted mixed assessments of advertising effectiveness among small and midsize advertisers, and news of a rival platform’s relaunch has further stoked concerns about Reddit’s growth prospects.

Founded in 2005, Reddit went public on the NYSE in March 2024 and has since positioned its advertising business and AI training-data licensing as key growth drivers, earning a reputation as a high-growth play. With its next earnings report due on February 5, the company’s ability to outperform market expectations will be a critical test for quelling overvaluation concerns and recent volatility.