Reddit Inc.RDDTTOP PICKSep 17, 2026Stock price when the opinion was issued
As of Sep 17, 2026. Market Open.
Very volatile. Underlying growth is pretty exceptional. Revenue grew 61% last quarter. Now very profitable. Enormous amount of authentic, human conversation makes it unique in an AI world. That content has value for advertising and AI models. Added to the S&P 500 this month.
Her preference in the space is still META, advertising engine is more mature and diversified. RDDT has more upside, but more volatility and execution risk.
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.
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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.
In the last quarter, the company reported 1.25 USD per share, beating the 0.95 USD estimate by 31.67%. Revenue for the same period reached 804.90 M USD, despite the estimate of 731.00 M USD. For the next quarter, analysts expect 1.32 USD in earnings per share and 872.39 M USD in revenue. Social media mentions are up 480% in the past 24h.