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Reddit (RDDT) Stock Skyrockets Following Earnings and Price Target Upgrades

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 8/3/2025, 9:27 am ET | 6 min
Reddit (RDDT) Stock Skyrockets Following Earnings and Price Target Upgrades Thumbnail

In this article

  • RDDT+6.95%
    RDDT - NYSEReddit Inc. Class A
    $202.75+13.12 (+6.95%)
    Volume:  15.11M
    Float:  166.99M
    $188.98Day Low/High$203.73

Reddit Inc.’s stock soars 16.57% as investor interest spikes with insights into user engagement and potential monetization strategies.

Media industry expert:

Analyst sentiment – positive

  1. Market Position & Fundamentals: Reddit (RDDT) holds a strong position in the media industry, with a recent quarterly revenue of $1.3 billion and a stable operating revenue of $392.4 million. Despite a concerning pre-tax profit margin of -36.5%, the company has positive earnings per share and has managed to swing to profitability indicated by a net income of $26.16 million. Currently, RDDT boasts a P/E ratio of 33.25, which suggests relative confidence from investors despite higher valuation multiples, such as a price-to-sales ratio of 26.91. Notably, a recent all-time high in their price-to-earnings ratio events underscores the volatility and speculative interest associated with the stock. The company has robust cash flows with a free cash flow of $126.6 million, indicating sound operational health.
  2. Technical Analysis & Trading Strategy: Analyzing Reddit’s recent price movements reveals significant volatility. The stock saw a notable climb, as evident from a leap from an opening of 144.86 to a high close of 189.2. The dominant trend captures upward momentum, reinforced by heightened volume accompanying the price surge post-positive earnings announcement. However, the recent pullback and consolidation towards 187.2 suggest caution. Traders might consider entering long positions on dips near the 187 support, employing stop losses slightly below this level to safeguard against downside risks. Observing continued bullish momentum or confirmation signals such as sustained high volume above this critical support will be crucial.
  3. Catalysts & Outlook: Recently, Piper Sandler elevated Reddit’s price target from $150 to $210, an endorsement aligned with the company’s exceeded financial forecasts and profitability milestones. The impressive 14% share spike post-Q2 results embodies market confidence stemming from their profitability trajectory and enhanced revenues. Nevertheless, potential regulatory challenges such as compliance with the UK’s Online Safety Act could pose execution hurdles. Media and Interactive Multi-Media benchmarks show industry challenges, with Reddit leveraging its user engagement and content platform adaptability for competitive positioning. Short-term, vigilant trading around resistance level 210 and support around 187 is prudent. Overall, the positive growth outlook, investor support, and financial performance position Reddit favorably against peers.

Candlestick Chart

Weekly Update Jul 28 – Aug 01, 2025: On Friday, August 01, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 16.57%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Reddit’s financial landscape has recently been invigorating, with the company swinging enthusiastically into profitability and its shares rising significantly soon after the release of its earnings report. The stock climbed to remarkable highs of $189 earlier this week but experienced a slight pullback to $187 by the end of trading on August 1, 2025. Such movements intrigue investors, underlining Reddit’s volatile, yet promising growth trajectory.

Financially, Reddit delivered robust results, sent off by its great earnings report. The company’s Q2 results displayed a striking increase in profitability combined with a revenue increase that many hadn’t anticipated. With revenue figures hitting over $1.3B and vital financial ratios aligning positively, Reddit has sparked renewed investor interest. The Price to Earnings (P/E) ratio stands at a healthy 33.25, framing Reddit with favorable valuation metrics indicating strong market prospects for growth.

More Breaking News

A closer analysis of its financial statements reveals Reddit’s strategic allocation and management priorities. Their profits have increased due to efficient cost management seen across the income statement, which indicates a refined approach to expenditures and investments. The organization’s assets, liabilities, and shareholder equity reflect a sound structural balance sufficient to sustain rapid growth. In their balance sheets, the company exhibits commendable current assets which provide ammunition for ongoing expansions and strategic plans.

Conclusion

Reddit’s strategic footsteps over recent months depict a narrative of upward mobility fueled by tactical growth and financial excellence. The significant increase in share value and optimistic forecasts position Reddit similarly esteemed as other digital titans. More importantly, market analysts and traders will likely continue holding Reddit in high regard, awaiting its next move in the bustling digital arena. 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 mindset is crucial for Reddit as it navigates its path forward.

Going forward, Reddit’s challenge is sustaining this success by delivering consistent earnings, smart innovation, and sustained user growth. With the tech landscape ever-evolving and trader expectations stretching, Reddit is tasked with demonstrating not just substantial growth, but prudent operational excellence. As it unfolds, Reddit remains one to watch, likely playing a definitive role in the future of digital engagement.

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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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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In this article (YTD Performance)

  • RDDT+15.42%
    RDDT - NYSEReddit Inc. Class A
    $202.75+13.12 (+6.95%)
    Volume:  15.11M
    Float:  166.99M
    $188.98Day Low/High$203.73

* 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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