EL7.AI
StocksMedium•31 July 2026•
1 min read

Reddit Stock Plummets 23% in Worst Day Since IPO as Alphabet Gains 6%

Key Facts

1Reddit shares dropped 23% to $136.32, marking the stock's worst intraday decline since its 2024 IPO.
2Alphabet shares jumped 6% in a notable divergence among social media stocks.

The social media sector is experiencing a sharp divergence in performance, highlighting significant volatility in tech valuations following recent earnings cycles. Reddit shares recorded their worst intraday decline since the company's 2024 IPO, plunging 23% to reach $136.32. This dramatic sell-off occurred despite the company previously beating Q2 estimates, underscoring the intense post-IPO volatility currently affecting the stock.

In stark contrast, Alphabet shares surged by 6%, demonstrating a notable decoupling from the broader social media trend. According to market data, this performance stands out against peers as META traded at $539.03 and MSFT at $451.10 (as of July 30, 2026), while AAPL stood at $301.19 (as of July 31, 2026). The data suggests that while mega-cap tech remains resilient, newer market entrants like Reddit face heightened scrutiny and aggressive profit-taking.

At the close of July 30, 2026, RDDT was positioned significantly lower than its previous level of $178.04, while GOOGL maintained strength at $333.66. Investors should watch for potential stabilization around the $136.32 level for Reddit. With no major upcoming central bank catalysts in the immediate calendar, market sentiment and individual corporate guidance will likely drive the next phase of price action for these instruments.