Reddit’s Red-Hot Streak: Stock Hits Fresh Highs As Q4 Print Nears, Retail Chatter Jumps 3,000% In A Month

Reddit, Inc.’s (RDDT) stock extended its record run on Wednesday morning, surpassing the psychological resistance level of $200 in early trading. 

The stock was among the top ten trending tickers on Stocktwits, with retail sentiment shifting from ‘bullish’ to ‘extremely bullish’ (75/100) compared to the previous day. Message volume remained at ‘extremely high’ levels.

The community-driven social media company went public on March 22, offering 22 million shares of its Class A common stock at an initial public offering (IPO) price of $34 per share.

Reddit shares had closed their debut session at $46 and rose to a post-IPO high of $74.90 two sessions later. After a broad consolidation move until late October, the stock gap opened up in reaction to a surprise profit and positive guidance.

Since then, the stock has followed an upward trend, as traders have responded positively to the company’s artificial intelligence (AI) initiatives and strong advertising revenue growth.

The next major catalyst for the stock’s near-term direction is its fiscal 2024 fourth-quarter results, set to be released after the market closes on Feb. 12.

On Stocktwits, activity surrounding Reddit surged as retail investors discussed the stock and the possibility of a sustained rally. Message volume has spiked by more than 3,000% over the past month.

Wall Street’s average Q4 earnings and revenue estimates for the San Francisco-based company are $0.24 per share and $404.17 million, respectively, compared to a loss of $8.19 per share and revenue of $242.96 million in the same quarter last year.

Some stock watchers expect the price to move toward $225 before earnings. 

Another user highlighted the company’s AI opportunities, stating they are “super bullish” on the stock.

However, Wall Street remains cautious about the stock’s valuation. According to TipRanks, the average analyst price target for Reddit is $180.76, suggesting a potential 9% downside.

Reddit stock rose 2.79% to $200.19 in early trading, adding to the 19% gain it has made so far in January.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: T-Mobile Stock Jumps On Stellar Q4 Results, Strong Guidance: Retail Excitement Grows