12:22 PM EDT, 03/27/2024 (MT Newswires) -- Reddit ( RDDT ) shares were down nearly 14% in recent trading after research investment firm Hedgeye Risk Management put out a report calling the social media platform a short idea.

Hedgeye analyst Andrew Freedman tweeted on X that Reddit ( RDDT ) stock has a 50% downside risk from the stock's initial public offering price.

"Heading into the IPO, we put RDDT on the short bench, reflecting our belief that the stock is a fundamental short but that the days immediately following the IPO would likely be volatile and not the proper time to make it an active short," Freedman wrote, according to a Bloomberg report.

Representatives for Reddit ( RDDT ) did not immediately respond to a request for comment from MT Newswires.

Price: 56.07, Change: -9.04, Percent Change: -13.88