Reddit Inc.RDDTTOP PICKJan 15, 2026Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
Nice, constructive chart. Big run last summer, going sideways toward the end of last year. In last month or so, quietly resuming its uptrend. This technical pattern is really strong and really powerful -- it's called the staircase pattern (rally, consolidate, rally again). Resistance looks to be $275-280 -- if it breaks out past that, a good sign.
At $80 in the spring, got above $240. A triple in a few months. With that type of explosive move, doesn't take much for people to say that's it, I'm out, and take profits -- doesn't even have to be directly related to the company itself. Hanging out ~$200, previous resistance ~$180 and that's potential support. Resistance perhaps $225 on a bounce.
Given the two peaks in August and September, watch for a head-and-shoulders top; too early to say right now. At the moment, looks like normal pullback after humongous move.
RBC Capital came out with a report showing declining RDDT daily average users (DAU). RDDT's citation share on ChatGPT has also shown a recent decline. These data points do fluctuate a lot, and the stock remains up strongly for the year to date. We would hold for now but buy into any further declines.
Unlock Premium - Try 5i Free
Is one of the most popular websites in the world. Is -44% from its February peak and a buying opportunity today. Soared 11% today. A wild, volatile stock though. Two weeks, they reported a stunning quarter with top and bottom line beats. They're growing fast and keeping costs down, so that means profits. Despite market worries over digital ads, Reddit execs offered strong guidance in earnings and revenues. And yet shares sank after that report; the sellers were wrong. Some analysts feared growth was slowing, even though numbers were good. Also, company guidance was cautious in its user forecast due to changes in Google's search algorithm; Reddit depends on Google to drive traffic. However, active advertisers grew 50% YOY, including in pharma, autos, telcos and financials. This puts to rest fears of Reddit unable to monetize its user base; 40% of Reddit chats are commercial in nature. In AI, Reddit has entered contracts with OpenAI and such to give access to Reddit's data API that will offer a AI a huge archive of Reddit's user-generated discussions; this will help train and improve AI. However, shares trade at a high 54x 2026 PE, though earnings are suppose to grow 85% in 2026. Buy Reddit here, but it is volatile.
Is -27% this year, but above its IPO. Have grown revenue 50% in the past 3 quarters. The last quarter was amazing. Hold $2 billion cash. However, they are closely tied to search, and AI will take a lot of that business away. Also, AI searches are using their answers. Also, trades at a high 52x PE. This will be okay, but buy lower.
Reddit is an American social network with news aggregation, content rating, and forum activity. Founded in 2005 by Steve Huffman and Alexis Ohanian, it is operated by Reddit Inc. Headquartered in San Francisco, Reddit has grown to become one of the most influential online platforms, facilitating discussions on a wide range of topics through its network of communities, known as "subreddits." As of February 2024, Reddit features over 16 billion posts and comments created by millions of daily active users. Reddit generates revenue primarily through the sale of advertising space on its platform and optional premium membership plans. Social media mentions are up 125% in the past 24h.