Let focus to rddt stock . Why is rddt downed below 5%?

The stock price of RDDT (Reddit Inc.) experienced a decrease of 3.96% on August 19. Reddit's stock decline below 5% can be attributed to the following factors:

1. **Legal Challenges**: There are class action lawsuits against Reddit Inc. by shareholders alleging mismanagement and misleading investors about the company's business operations. Such legal challenges can lead to investor uncertainty and negative sentiment towards the company.
2. **Market Consolidation**: The stock price of RDDT has experienced fluctuations over the past two weeks, with a significant peak at 4.8% on August 12. This consolidation period could be due to various factors, including investor reactions to recent news, market conditions, or company-specific developments. The peak at 4.8% on August 12 might indicate a potential reversal point, but the recent decline of 3.96% on August 19 suggests a return to previous trends or a new downward pressure.
3. **Overvaluation Concerns**: Despite Reddit's impressive earnings results and growth prospects, the stock has a high PE ratio of 208.07, indicating that it may be overvalued by some investors. This perception of overvaluation can lead to a sell-off as investors look to reduce their exposure to the stock.

In conclusion, the decline of RDDT below 5% is likely a result of a combination of factors including legal challenges, market consolidation and overvaluation concerns.

|code|Ticker|Name|Date|Percentage Change|market_code|
|---|---|---|---|---|---|
|RDDT|RDDT.N|Reddit|20250815|1.2445|169|