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Reddit Stock’s Wild Ride: What’s Next?

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 3/21/2025, 11:38 am ET 3/21/2025, 11:38 am ET | 6 min 6 min read
Reddit Stock’s Wild Ride: What’s Next? Thumbnail

A strategic partnership announcement with a leading tech firm has significantly boosted Reddit Inc.’s market confidence, leading to a substantial uptick in investor enthusiasm. On Friday, Reddit Inc.’s stocks have been trading up by 5.19 percent.

Market Developments:

Candlestick Chart

Live Update At 11:38:14 EST: On Friday, March 21, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 5.19%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Loop Capital finds Reddit appealing as a Buy after its stock cratered 50% in one month, setting a $210 target amid current struggles.
  • Family features and extra safeguards by TikTok shine positively on platforms like Reddit, emphasizing industry-wide user safety improvements.
  • Reddit stock rose by an impressive 1.8% during pre-bell trading, building on a 14.4% increase from the day before.
  • Google teams with Reddit, though the collaboration has not notably affected its share price, which is sitting at around $167.54 currently.
  • Reddit experienced a premarket swing from a decline to a modest gain, indicating fluctuating investor confidence.

Financial Picture: Key Metrics and Insights

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Reddit’s latest earnings report brought a mixed bag of numbers. Revenues hit $1.30 billion, a solid number, but the company battles a hefty pretax profit deficit with a margin of -54.1%. This points to operational difficulties needing attention. Meanwhile, the enterprise value stands tall at $17.85 billion, reflecting investor reliance on Reddit’s potential breakthroughs and market influence.

From a valuation standpoint, Reddit’s price-to-sales is a towering 20.67. This suggests that investors are paying a premium for each dollar of sales, betting on future growth capabilities anchored in its innovation and existing user base. The company shows strong financial leverage at a modest 1.1 times, presenting an ability to cover debts with assets like cash ($562M) and investments.

Drilling into Reddit’s cash flow, it’s intriguing to see net income from ongoing operations tally up to $71M, illustrating efforts to reach profitability. Nonetheless, an ongoing cash flow from operating activities of approximately $90M further depicts determined management strategies overcoming roadblocks.

Understanding the Numbers:

The stock chart paints a picture of volatile market behavior. The highs and lows tell about investors’ reactions and the challenge to secure stability at certain price points. On Mar 21, 2025, Reddit’s closing position at $114 reflected a sharp upward trajectory unseen since its previous declines.

Across the key ratios, results imply fluctuations. For instance, Reddit’s price-to-cash-flow is an eye-catching 54.7, further accenting the anticipated growth potential that has captivated investors despite the current challenges.

Market Implications: The Synthesized Impact

The recent news highlighting Reddit’s foray into a collaborative agreement with Google has kept industry analysts abuzz. This partnership might’ve brought short-term share price discreteness, but it casts a larger shadow in terms of long-term possibilities. Google and Reddit can jointly explore newer avenues for information dissemination, branding, or even data analytics.

As Loop Capital’s insights urge buyers to consider Reddit’s beleaguered stock enticing, the emphasis on the firm’s determination to enhance its market position becomes pronounced. What this does is fuel investor enthusiasm capable of nudging the stock upward, even amidst uncertainties.

TikTok’s ecosystem-wide push for fortified family features indirectly aids Reddit by boosting industry perceptions toward platforms offering structured user experiences. Reddit, via its community-driven ethos, could capitalize on this sentiment and further define its place in users’ digital lives.

More Breaking News

Analyzing Market Reactions: What’s Driving the Change?

Reddit’s momentum has played a tale of sharp rises and equally steep falls. The choppy movement seen from the February tail-end through to March was punctuated by trader anticipation, shifting confidence, and external partnership announcements.

By considering these components, Reddit’s chart movements often reflect broader tech trends, user community dynamics, and societal patterns being accounted for by traders placing their bets. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This sentiment resonates with those navigating Reddit’s volatile atmosphere, underscoring the importance of cautious trading.

Together, these sections demonstrate how Reddit finds itself at a crossroads, where shrewd fiscal moves and sustained innovation will decide the firm’s upcoming trajectories. From the nitty-gritty of financial metrics to the expansive domain of community influence, Reddit remains a living case study of a tech firm embodying challenge and potential in equal measure.

The key takeaway emphasizes Reddit’s complex stature in the stock market – a multi-layered entity grappling with operational issues but pivoted on potential partnership avenues and industry-wide improvements. The narrative of Reddit’s shares in the coming quarters will likely continue to oscillate between stakeholder optimism and the pragmatism of financial marks.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”