Reddit Stock: Insider Selling Raises Pump-and-Dump Possibilities
At least two Reddit insiders reportedly sold large numbers of the company’s shares soon after the initial public offering.A firm’s analysts envision RDDT stock dropping 50%.Investors should only maintain a very small position size, if any at all, in Reddit stock.I’m not denying that Reddit’s debut for public trading could still be 2024’s most important initial public offering. At the same time, it’s too risky to hold more than a few shares of RDDT stock. So, don’t go overboard and, as always, be sure to have an exit strategy in place.First things first: I’m not directly accusing Reddit’s management of perpetuating a pump-and-dump scheme. However, it’s quite interesting that at least two insiders dumped large quantities of Reddit shares soon after the company’s IPO.Furthermore, Hedgeye analyst Andrew Freedman almost seemed disgusted by the early hype surrounding the Reddit IPO.“The deal was oversubscribed, the float small, valuation range looked reasonable, and
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