CEO Share Sale Shakes 'Community Empire'... 2 Trillion Won Vanishes in a Day

US social media firm Reddit Inc. (RDDT) tumbled 7.64% on the New York Stock Exchange on February 4, closing at $155.59. In a single day, the company lost about $1.5 billion in market value (roughly KRW 2 trillion), with trading volume reaching approximately 5.28 million shares. Reddit’s current market capitalization stands at about $21.4 billion (around KRW 29 trillion).

The stock has declined by the high teens in percentage terms over six consecutive trading days after news that CEO Steve Huffman sold approximately $3.3 million worth of shares and a report warning of slowing revenue growth in 2026. With Reddit set to report its earnings after the U.S. market close on February 5, analysts anticipate increased short-term volatility.

Reddit operates a community-driven platform where users worldwide participate in discussions, ask questions, and share memes, generating most of its revenue from advertising and data licensing. Recent changes to Google’s search algorithm and the rise of AI-powered search have emerged as potential headwinds to Reddit’s traffic and ad growth, making the stock a focal point for both concerns and hopes for its medium- to long-term growth prospects.