RDDT Should I Buy
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Reddit Inc (RDDT) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown impressive financial growth and positive revenue trends, the technical indicators suggest bearish momentum, and the options data reflects a cautious sentiment in the market. The lack of recent trading signals from Intellectia Proprietary Trading Signals further supports a hold recommendation.
The technical indicators for RDDT show bearish momentum. The MACD is negative (-4.981) and contracting, RSI is oversold at 17.237, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 133.031, with resistance levels at 157.008 and 180.985.
Reddit achieved a 70% YoY revenue increase in Q4, reaching $726 million.
Strong user growth and improved profitability.
A $1 billion share buyback program announced recently.
Analysts highlight strong advertising revenue and potential for AI licensing deals.
Bearish technical indicators and oversold RSI.
Analysts have broadly lowered price targets, citing market volatility and sector-wide de-ratings.
Hedge funds and insiders show neutral sentiment with no significant trading trends.
Stock trend analysis predicts a potential decline of -0.05% in the next day, -0.81% in the next week, and -4.51% in the next month.
In Q4 2025, Reddit reported a 69.65% YoY increase in revenue to $725.6 million, a 254.19% YoY increase in net income to $251.6 million, and a 210% YoY increase in EPS to $1.24. However, gross margin slightly declined by 0.69% YoY to 91.91%.
Analysts have mixed views on Reddit. While firms like Guggenheim and B. Riley raised price targets and maintain Buy ratings, others like Wells Fargo, Citi, and Goldman Sachs lowered price targets citing market volatility and sector-wide de-ratings. The consensus reflects cautious optimism with a focus on long-term growth potential.
