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Reddit soars after legal showdown against AI competitor

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 6/17/2025, 2:33 pm ET 5 min read
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Reddit Inc.’s ambitious IPO announcement drives stocks up by 7.1 percent, signaling high investor confidence.

Latest News on Reddit’s Rising Stock

  • Reddit shares escalated over 7% reportedly following a lawsuit against the AI company Anthropic. The dispute stems from Anthropic allegedly utilizing Reddit’s data without a proper licensing agreement. This has sparked significant buzz among investors.

  • A collection of various stocks, including Reddit, displayed pre-market growth with individual hikes ranging from 0.7% to 2.9%. This indicates a positive trend for some key players, hinting at potential movements in the tech market realm.

  • Adam Collins, formerly with Molson Coors Beverage, is appointed as Reddit’s first chief communications officer. This move underlines Reddit’s intention to bolster its brand and streamline strategic communication initiatives.

Candlestick Chart

Live Update At 14:32:30 EST: On Tuesday, June 17, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 7.1%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Reddit’s Financial Landscape: Metrics and Recent Earnings

In the volatile world of trading, success is often dictated not just by one’s strategies, but also by their mentality. Recognizing this, it’s crucial for traders to maintain resilience through the inevitable highs and lows of the market. As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This mindset allows traders to view setbacks not as failures, but as opportunities to learn and refine their approach, ultimately leading to more informed and effective trading decisions.

Delving into Reddit’s earnings, several facets demand attention. The company’s recent quarterly report reveals total revenue reaching over $1.3B, coupled with an operating income shy of $4M. While its EBITDA stands at approximately $29.86M, Reddit’s cost closely hovers around $370.89M, showcasing a fervent fervor to harness resources prudently. One might wonder how Reddit maneuvers their finance chessboard with profitability indices like pretax profit margin poised at a baffling -36.5%. However, buoyed by a sales price-to-book ratio of 21.15, Reddit maintains its course, strategically navigating turbulent billing waters.

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In terms of cash flow, Reddit stands at a solid $73.59M net cash change, fueled by free cash flow of $126.59M. And while Reddit’s retained earnings manifest a shortfall nearing $1.17B, the corporation champions through operational prowess, deemed by stakeholders as exemplified resilience amid fiscal adversity.

Decoding Reddit’s Latest Performance Boost

Analyzing recent strides made by Reddit, the company’s legal affront towards Anthropic plays a pivotal role. This clash over unauthorized data use doesn’t just position Reddit as a staunch defender of proprietary rights but also heightens tension across digital corporate landscapes. Investors, fueled by a robust belief in Reddit’s prowess to claim its dues, tend to eye this lawsuit optimistically. And why not? With history as our guide, such endeavors usually toggle the market’s pulse, provoking upswings amidst procedural skirmishes.

Moreover, the attention garnered by Reddit’s ambitious appointment, Mr. Collins corroborates the anticipation around this reformative era. Manifesting astute communication stratagems, Reddit nudges its brand prominence further into the limelight. This newfound emphasis on clarity and articulation may just become the elixir needed to reinvigorate interaction on this quintessential online panel.

Determining RDDT’s Future Stock Movement

As traders dissect Reddit’s labyrinthine potential from myriad lenses, key factors lie await: litigation settlements potentially yield dividends, while shifts in executive lines embellish corporation etiquettes. Notably, Reddit’s lawsuits symbolize a navigation compass set toward judicious tides. The speculative waves churn, as market enthusiasts ponder over inevitable chain reactions. As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This sentiment echoes the need for caution and strategic maneuvering in the trading realm.

Ultimately, Reddit’s story beckons a synthesis between foresight and desiring spirit. Drawing parallels from the past, anticipating turns and tides becomes a matter of studious scrutiny blended with time-tested patience. Whether RDDT progresses or falters deeply enrooted in formidable sands, one cannot disregard its imprint on modern discourse terrain. As the market embraces this saga, one awaits, shaded in intrigue, the mansion’s unfolding. With these analyses, awaits a tip of fortune’s balance, swaying to seal Reddit’s destiny in the chapters looming.

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”

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