AI Boom in Meme Community Sees 2 Trillion Won Vanish in a Day

On the 1st (local time) at the New York Stock Exchange, shares of U.S. online community platform Reddit Inc. (NASDAQ: RDDT) closed at $186.32, down 5.78% from the previous session. Its market capitalization stood at approximately $26.4 billion, or roughly KRW 37 trillion, with about $1.4 billion (around KRW 2 trillion) wiped out in a single day on trading volume of roughly 2.47 million shares.

The prior day, optimism over AI licensing negotiations had driven the stock up as high as $197.32, a surge of around 14%. Analysts say the rally was followed by profit-taking and a pullback from short-term overheating. Despite continued expectations for AI-related data and content licensing revenues, the stock is viewed as highly volatile, with regulatory pressures and valuation concerns weighing on sentiment. ()

Reddit is a social news and community service that aggregates user-generated posts and comments into topic-based communities. It went public on the New York Stock Exchange in March 2024 under the ticker RDDT. Since its IPO, the company has pursued revenue diversification through advertising and data licensing, yet regulatory and litigation risks, along with debates over its valuation, remain recurring considerations for investors. ()