[tenpies]

What do you make of something like Reddit (RDDT, down -15% at this moment)?

It's unaffected by tariffs, but its insane valuation is driven by the narrative that Reddit posts can be used to train AI. Without that narrative, you have a semi-toxic collection of forums and the valuation would probably be somewhere in the millions at best, not the current $20 BB.

[loandbehold]

Reddit is an ad-driven business. Ad revenues decline when economy shrinks.

[mixmastamyk]

When a correction happens, everyone with short-term funds pulls them out. Doesn't matter if the issue has a direct connection to the stock or "makes sense" at all.

[daedrdev]

Loss-making businesses money can be expected to fail more often when a recession occurs, which looks increasingly likely. After all if they can't make any money today how will they make a profit if add spend is down by 30%?

[greener_grass]

The companies that might acquire Reddit are affected by tariffs.

[aetherson]

I mean, not to say that you might not have some explanatory power here, but the market is complex and difficult to untangle, and at least some analysts are predicting recession which will certainly have effects on Reddit even if it's not directly affected by tariffs. We can all cherry-pick individual stocks.