12:42 PM EDT, 03/27/2024 (MT Newswires) -- (Updates with Reddit ( RDDT ) response in last paragraph and more detail)

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 Wednesday 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.

Reddit ( RDDT ) shares debuted on the New York Stock Exchange March 21 at $47, higher than the initial public offering price of $34. The shares have been steadily gaining since the IPO but are on track for their sharpest decline since that debut.

Reddit ( RDDT ) declined to comment.

Price: 57.36, Change: -7.76, Percent Change: -11.90