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Reddit’s Stock Swing: Buying Opportunity?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 3/21/2025, 2:33 pm ET 3/21/2025, 2:33 pm ET | 6 min 6 min read
Reddit’s Stock Swing: Buying Opportunity? Thumbnail

Reddit Inc.’s stock rose Friday, spurred by a surge in positive sentiment as new features aimed at enhancing user engagement and monetization were reported, marking a promising shift for the company’s growth strategy. On Friday, Reddit Inc.’s stocks have been trading up by 6.46 percent.

Impactful News Stories

  • Loop Capital maintains a Buy rating on Reddit with a $210 price target, amidst a significant stock decline, indicating long-term growth potential.
  • TikTok’s new safety features highlight the social media industry’s ongoing dedication to user welfare, shedding a positive light on companies like Reddit.
  • A slight increase in Reddit’s pre-bell stock price suggests optimism after a 14.4% rise in the previous session.
  • Despite Google’s minor dip, the expanded partnership with Reddit indicates the strategic synergy between the two tech giants.

Candlestick Chart

Live Update At 14:32:34 EST: On Friday, March 21, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 6.46%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Reddit’s Recent Financial Performance

When trading stocks, it’s crucial to understand the dynamics of risk and reward. Many novice traders make the mistake of chasing losses, which can lead to dire financial situations. 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 advice emphasizes the importance of knowing when to cut your losses and avoid further financial deterioration. By maintaining this disciplined approach, traders can preserve their capital for future opportunities rather than being burdened by negative balances that could hinder their ability to trade effectively.

The financial landscape for Reddit is a tapestry of intricacies and numbers. The company’s recent earnings report gives us a snapshot into Reddit’s world. In 2024, the firm recorded a substantial revenue of over $1.3 billion. However, the company grapples with losses as seen in key profitability ratios. A razor-thin EBIT margin alongside a solid price-to-sales ratio suggests that Reddit’s high valuation is a topic of conversation among investors.

Interestingly, the stock’s movement has been volatile. Recently, the intraday chart showed some swings despite an upward crescendo. The max close just reached $115, battling a previous nosedive from a high of over $165. Such fluctuations are not uncommon, given Reddit’s dynamic market environment.

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Despite challenges, Reddit’s bold and innovative strategies, like its evolving advertising framework and community engagement, have fueled interest. With a current ratio leaning towards equilibrium, the finances indicate reasonable short-term liquidity, ensuring Reddit’s ability to continue operations smoothly.

Financial Indicators and Company Positioning

Zooming into the numbers, Reddit’s total assets stand tall, touching close to $2.34 billion, yet the debt, though managed, reflects the need for caution. Return metrics reveal a painstaking journey with return on equity pinging at -24.13%, a reminder of currently negative profitability but potential long-term promise.

Surprisingly, the company’s investment in new assets and internal growth strategies suggest strategic planning. Operating cash flows paint a brighter picture with healthy buffers in sustaining business needs.

Reddit’s partnership expansions and strategic pivots are intentional moves to bolster their foothold in the tech realm’s busy crossroads. Perhaps, it’s these bold moves that could yet redefine Reddit’s trajectory, charting a path toward a brighter horizon.

Market Movements and News Influence

The recent flurry of news around Reddit is like a collection of threads intricately woven, each depicting a tale of its possible future. Loop Capital’s optimism is a beacon for investors who see beyond the immediate numbers to the realm of potential growth. Setting eyes on a $210 target, investors might weigh their risks against these expert insights.

Adding to this confidence is TikTok’s expanded suite of family-friendly features, which not only elevates TikTok but also casts an illuminating aura over social counterparts like Reddit. This narrative strengthens the perception of Reddit’s resilience in an evolving social media landscape.

Further, Google’s expanded ties with Reddit reiterate confidence in shared goals and strategic alignment. A slight dip in Google shares is an ephemeral blip on a promising alliance that both entities are likely to nurture.

As these stories unfold, Reddit’s stock volatility paints a lively picture, reflecting both existing challenges and forthcoming opportunities. Analysts and investors will continue recalibrating their outlook as they traverse the fluctuating landscape of Reddit’s financial universe.

Summary

Reddit, Inc.’s journey through the bustling world of finance is nothing short of dramatic. With lofty ambitions set against a backdrop of strategic moves and complex market dances, the company’s potential keeps trader interest alive. Whether it’s Loop Capital’s unwavering Buy rating amidst a stock tumble or Reddit’s growing ties with tech giants like Google, the narrative is dense with possibility.

As the fleas of market volatility persist, Reddit’s inherent optimism, bolstered by partnerships and strategic initiatives, is a lighthouse in a formidable sea. Traders, armed with patience and foresight, may yet find Reddit’s promise an exciting horizon in their trading odyssey. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.”

The journey is far from over for Reddit. With each passing quarter, with each potential partnership, every market swing, Reddit is charting its course, one intricate thread at a time. Will it create a tapestry of triumph, or will it unravel at the seams? As the stories develop, one thing is certain: Reddit remains a focal point of fascination in the world of finance.

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.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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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”