FILE PHOTO: A trader wears a t-shirt with Reddit's logo, at the New York Stock Exchange in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermid/File PhotoNEW YORK : Reddit stock's stellar market debut has drawn significant bearish bets against the social media forum in its first few days of trading, data from analytics company Ortex on Wednesday showed.
Based on 2.15 million Reddit shares out on loan, at least 7.1 per cent of the company's free share float has been sold short, according to a preliminary Ortex estimate. "This is very high for a stock that just started trading, and is an indication that some market participants have a negative view of the future price of Reddit," Ortex co-founder Peter Hillerberg said.On Wednesday, Reddit shares fell 12 per cent to $56.91, snapping a two-day streak of gains. In its market debut on March 21 Reddit shares closed at $50.44, 48 per cent above its initial public offering price.
Some 53,000 Reddit options contracts had changed hands by 1:30 p.m. ET , with sentiment leaning toward bearish bets, Trade Alert data showed. The day's volume was projected to hit 82,000 contracts, down from 131,000 contracts traded on Tuesday. We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be.