Reddit Shares Drop Following Stake Sale Plans by Major Investors

Advance Magazine Publishers and Tencent Holdings disclose significant share sales, prompting market concerns about Reddit's valuation.

Reddit's stock fell over 8% on Friday after reports that Advance Magazine Publishers plans to sell 7.8 million shares to secure a $1.2 billion credit facility.
Advance intends to maintain its ownership stake by purchasing derivatives tied to the shares being sold, according to Bloomberg.
Tencent Holdings, a major Reddit shareholder, has reduced its stake by selling over 3 million shares in November, leaving it with 7.7 million shares worth approximately $1.1 billion.
Reddit insiders, including CEO Steve Huffman and COO Jennifer Wong, have also sold shares recently, contributing to market concerns.
Despite the drop, Reddit's stock remains significantly higher than its IPO price of $50.44, closing at $143.84 on Friday.