10 Firms Drenched in Red Today

4. Reddit, Inc. (NYSE:RDDT)

Reddit extended its losing streak for a fifth consecutive day on Wednesday, losing 9.27 percent to close at $95.85 apiece as investor sentiment was dampened by an investment firm’s downgraded rating on its stock.

Earlier this week, Wells Fargo lowered its stock rating for Reddit, Inc. (NYSE:RDDT) to “Equal Weight” from “Overweight” previously, as well as its price target to $115 from $168 prior.

The rating was based on the belief that Google’s move to fully integrate artificial intelligence into its search engine operations could dent Reddit, Inc. (NYSE:RDDT) and its customer count permanently.

It noted, however, that Google’s AI integration not only affects Reddit, Inc. (NYSE:RDDT) but also the other companies dependent on search traffic.

Wells Fargo also highlighted how Reddit’s stock is currently under pressure due to user disruption.