DailyIQ
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Sector:Communication ServicesAll sectors
Last updated2 minutes ago

RDDT·Reddit, Inc.

$154.45
-1.54 (-0.99%)
Market Closed (Overnight)$154.50+0.05 (+0.03%)
High
$157.28
Open
$155.74
Market Cap
30.01B
52W High
$282.95
Low
$152.35
P. Close
$154.45
P/E
34.45
52W Low
$119.27
Fwd P/E
15.94
DailyIQ Est.
$225.80
Inst. Ownership
47.0%
Short Interest
8.69%
Days to Cover
2.6
Technical Score (1D)
36
SELL
News Sentiment
41
BEARISH
Reddit’s CEO Steve Huffman exercised 18,000 options at $25.29 and sold the resulting shares at $148.02 on Aug. 31 2026, a move executed under a pre‑established Rule 10b5‑1 plan. The sale occurred while the stock had fallen 34 % over the prior year, suggesting a liquidity need or portfolio rebalancing rather than a strategic shift. Because the transaction was routine insider activity, it does not alter Huffman’s indirect ownership through trusts and derivatives, which remains substantial. The immediate market reaction has been muted, with RDDT trading near $148 after the sale, indicating that traders are not yet pricing in a significant change in fundamentals. Over the next 1–10 trading days, the key implication is that the price may continue to reflect the broader decline in Reddit’s valuation, as the insider sale does not signal a new growth narrative. Watch for any subsequent corporate disclosures that could clarify whether the company’s growth prospects are being reassessed, as this could either reinforce the bearish view or provide a catalyst for a rebound. Also monitor any changes in the company’s earnings guidance or user‑growth metrics, which could alter the market’s perception of the stock’s upside potential.
Earnings Summary
Reddit, Inc. operates a global online platform that centers on user‑generated content and community interaction, positioning itself within the Communication Services sector and the Internet Content & Information industry. The platform’s unique value lies in aggregating niche interests, fostering diverse communities where users share text, images, and video, which supports both casual browsing and focused engagement. Recent quarterly results show a consistent upward trajectory in both earnings and revenue. In Q4 2024, EPS of $0.36 beat the $0.25 estimate while revenue reached $427.7 M, and the trend continued with Q1 2025 EPS of $0.13 versus a $0.01 estimate and revenue of $392.4 M. Q2 2025 delivered EPS of $0.45 against an $0.19 estimate and revenue of $499.6 M, followed by Q3 2025 EPS of $0.80 versus a $0.52 estimate and revenue of $584.9 M. The most recent Q4 2025 results showed EPS of $1.24 beating the $0.96 estimate and revenue of $725.6 M versus a $678.8 M estimate, while Q1 2026 EPS of $1.01 slightly missed the $1.11 estimate but revenue of $663.4 M exceeded the $609.8 M estimate. Q2 2026 continued the pattern with EPS of $1.25 versus a $1.45 estimate and revenue of $804.9 M versus a $744.9 M estimate. Historically, Reddit has maintained a YoY growth trajectory with EPS and revenue consistently beating analyst expectations across the last eight quarters, reflecting robust monetization of its advertising and premium services. The company’s earnings pattern shows a strong ability to exceed estimates even as revenue growth decelerates slightly in later quarters, indicating resilient profitability. Recent news highlights the company’s addition to the S&P 500, which triggered a mechanical purchase of 16.7 M shares by index funds, temporarily boosting liquidity and institutional ownership. Analysts note a slowdown in logged‑in user growth and potential erosion of ad pricing power from AI‑driven search tools, suggesting that future ad revenue could be pressured. The Q2 2025 results, with 61 % revenue growth, 64 % ad revenue increase, and a 91 % gross margin, provide a solid earnings base but also underscore valuation concerns. Investors should watch for the next earnings guidance on Q3 revenue, any updates on AI licensing deals, and shifts in user engagement metrics that could impact ad revenue. Key will be monitoring institutional buying patterns post‑index inclusion and any revisions to rent‑growth or lease‑renewal assumptions that may influence the company’s valuation trajectory.

EPS

EstBeatMiss
$-0.07$0.50$1.07$1.64$2.21Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$1.95 - -
Q2'26$1.45$1.25-13.6%
Q1'26$1.11$1.01-9.0%
Q4'25$0.96$1.24+29.8%
Q3'25$0.52$0.80+53.8%
Q2'25$0.19$0.45+138.4%

Revenue

EstBeatMiss
$441M$568M$695M$822M$950MQ2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$891M - -
Q2'26$745M$805M+8.1%
Q1'26$610M$663M+8.8%
Q4'25$679M$726M+6.9%
Q3'25 - $585M -
Q2'25 - $500M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

RDDT Stock Snapshot

HOLD36/100
$154.50+$0.05 (0.0%)
Market cap
30.01B
P/E ratio
34.5
Day range
$152.35 – $157.28
News sentiment
41/100 · Neutral
Analyst target
$213.10 (+37.9%)
Consensus
Buy · 39 analysts
52-week range+29.5% off low · -45.4% from high
$119.27$282.95
Price $154.50 DailyIQ Est. $225.80

The technical read on RDDT is balanced, which usually means the market is waiting on a catalyst. In Communication Services, names this size usually take direction from sector flows before company-level news.

Behaviour On Record

What RDDT's own history says about today's numbers

Realized volatility (21d)
78.1% 68th pct
vs 200-day average
-10.5%
Up days (1y)
49%

Reddit, Inc. is currently running 78.1% annualised volatility over the last 21 sessions. Measured against RDDT's own 2 years of daily returns rather than a market-wide average, that is the 68th percentile — a little above its own norm, against a typical reading of 68.2%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

Price sits -10.5% from its 200-day moving average. Against every other day in its history, that gap ranks at the 30th percentile — close to the gap it normally carries. Over the past year RDDT closed higher on 49% of sessions, and it is currently 1 session into a rising streak.

Overnight risk is measurable too: RDDT has opened more than 2% away from the prior close in 47 of 616 sessions (7.6% of the time), with the largest gaps running +7.5% and -8.4%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

Across the last 3 dated reports on file, RDDT moved an average of 7.7% in the session after earnings, closing higher 1 of those 3 times, with a median move of -10.3% and a largest of -12.2%.

All figures computed from 617 daily closes between 2024-03-21 and 2026-09-04, split-adjusted, recomputed daily. Percentiles are against RDDT's own 3-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of RDDT's sector?

Reddit, Inc. sits in the Communication Services sector, currently ranked 4th of 11 GICS sectors by relative-strength rotation score (weakening).

Sector rank
#4 of 11
Sector state
Weakening
Sector rotation score
60

Options Market

What is the options market pricing for RDDT?

CallsPuts

For Reddit, Inc.'s nearest expiry (2026-09-11, 6 days out), open interest is roughly balanced between puts and calls (put/call ratio of 0.99), with at-the-money implied volatility around 54.9%. The options market is pricing roughly a ±6.9% move by that expiry — a range of about $142.23–$163.16.

Put/call ratio (2026-09-11)
0.99
ATM implied volatility
54.9%
Total open interest
21,852
Expected move by 2026-09-11
±6.9% ($142.23–$163.16)

RDDT Competitive Positioning

Reddit, Inc. (RDDT) is tracked alongside these names in Internet Content & Information on DailyIQ — ranked by market cap, with today's move alongside.

Held by These ETFs

RDDT is a top holding in these ETFs tracked on DailyIQ — bar length shows portfolio weight.