Reddit shares decline following strong NYSE debut

Reddit shares: highly anticipated debut of social media platform Reddit on New York Stock Exchange saw its shares dip by 2.6 per cent before opening bell on Friday. decline comes a day after company saw 48 per cent gain in its initial public offering (IPO).

Investors closely monitored Reddit's share sale for insights into market appetite for new offerings, particularly following a recent slowdown in IPO activity. Analysts suggest that performance of Reddit's stock in coming weeks may influence IPO plans of or tech startups, especially those yet to turn a profit.

Despite Reddit's lack of annual profitability since its inception in 2005, company received a positive reception from investors on Thursday, leading to a valuation of $9.52 billion by end of trading session.

Prominent investor Cathie Wood's ARK Invest also displayed confidence in Reddit by purchasing nearly 10,000 shares of company on Thursday, according to an email from asset manr.

However, discussions on Reddit's own forums have revealed some scepticism among users, despite platform's popularity among retail traders during "meme-stock" frenzy of 2021. Recent threads on Reddit's largest stock trading forums have focused on company's lack of profitability, with some users even considering bearish options strategies, such as buying put options, on stock.

(With Reuters inputs)