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Recession risks are picking up in 2025, with concerns around tariffs and slowing consumer demand driving greater interest in defensive equities and less interest in the growth stocks that drove the market to new highs in 2024. Magnificent 7 stocks are in the red as even some of investors’ favorites have been unable to shake concerns that a prolonged economic and market contraction is just ahead.
Reddit (RDDT) is another growth-oriented company that has experienced a selloff in the year to date. The company hit a new 52-week high of $230.41 on Feb. 10 but has since plunged more than 50%. The stock is down nearly 32% since the start of the year and is trading near $110 as of March 26.
