US brokerages start Reddit coverage with doubts over turning a profit

Two U.S. brokerages began coverage of Reddit by taking a skeptical stance on the social media platform’s ability to turn profitable and raised concerns over its potential entry into the ‘meme stock’ club.

Reddit has not posted an annual profit since its launch in 2005 and its shares have now fallen below its debut price of $47. Its initial public offering last month was priced at $34.