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Reddit Stock Sees Unexpected Rise: What’s Driving It?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 3/12/2025, 2:33 pm ET 5 min read
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In this article

  • RDDT+8.19%
    RDDT - NYSEReddit Inc. Class A
    $132.78+10.05 (+8.19%)
    Volume:  11.91M
    Float:  85.71M
    $123.26Day Low/High$136.47

Riding high on investor enthusiasm, Reddit Inc.’s stock has been energized by significant developments as the company gears up for a future IPO and successfully entered into a vital collaboration with a media giant, causing its stocks to surge. On Wednesday, Reddit Inc.’s stocks have been trading up by 8.41 percent.

Latest Developments:

  • Despite a 50% decline last month, Loop Capital describes Reddit’s stock as ‘extremely attractive’, maintaining a Buy rating with a significant price increase target.
  • The partnership deal with Intercontinental Exchange (ICE) boosts Reddit’s interest as they gear up to create advanced analytics tools for the financial sector.
  • In the wake of Google’s algorithm changes causing a dip in U.S. daily active users, Reddit recovers with a raised price target and displays strong financial performance.
  • Recent ratings from Roth MKM suggest caution. Anticipated revenue decline for Reddit, yet noticeable performance spikes add intrigue to its future value.
  • The social media landscape sees positive momentum. Enhancements in user safety across platforms shine a light on commitments, indirectly boosting Reddit’s appeal.

Candlestick Chart

Live Update At 14:33:12 EST: On Wednesday, March 12, 2025 Reddit Inc. stock [NYSE: RDDT] is trending up by 8.41%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Performance Overview

In the world of trading, maintaining a calculated approach is crucial to success. Sometimes, refraining from making a bad trade can be just as important as making a profitable one. 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 mindset emphasizes the importance of risk management over potential gains and highlights the value of preservation in trading just as much as advancement.

The latest earnings report paints an intriguing picture of Reddit’s financial landscape. For Q4 2024, the company reported total revenue of $427.71M. With a gross profit of $395.86M, Reddit portrays strong operational figures, despite a deeper glance revealing some contrasting narratives.

Digging deeper into financial metrics, Reddit’s net income reached approximately $71.04M, revealing its ability to generate profit from core activities. However, with total expenses climbing to near $374.83M, careful balancing of expenditure versus revenue becomes conspicuously strategic.

EBIT, standing at roughly $69.99M, exemplifies Reddit’s operations efficiency. Yet, the negative pretax profit margin of -54.1% signals room for both growth and optimization.

The income statements presented curious dynamics. The operating cash flow saw much-needed inflows, standing robustly at about $89.99M. Despite alterations in cash flows, investing activities tempted reliance more heavily on strategic partnerships, echoing recent agreements with entities like ICE.

Reddit’s earnings illustrate a peculiar dichotomy between robust top-line growth versus profitability margins needing recalibration. It’s a prelude that underscores resourceful foresight rather than instant wins.

Trending Factors and Speculated Market Movements

How external narratives shape Reddit’s stock is rooted in evolving market maneuvers. A peak into current ecosystems reveals the aftershocks of Google’s shifting terrains. A temporary dip caused by a reduction in U.S. daily active users, by all odds, slingshot Reddit to recalibrate its algorithms, subsequently garnering an optimistic price target raise.

Under the watchful eyes of Loop Capital, Reddit embodies resilience and adaptability, tantalizing its positioning with a $210 price vision. It is a portrayal of optimism amid a volatile backdrop that prevails in stock market sagas, hinting towards prospective own-the-moment ventures.

Reddit’s alliance with ICE marks a mystifying step forward to unlocking vast data analytics possibilities. By forging intercontinental ties, it paves lanes to proliferate into spheres hitherto untouchable.

Anticipated revenue slowdowns and margin compressions signal a hedged outlook from Roth MKM, suggesting price anchors may be under pressure from macro disruptions coupled with algorithmic transitions.

Interestingly, TikTok-induced safety improvements reverberated positively across the industry. The sentiment translated into heightened priorities spreading waves of goodwill and tangential interest toward platforms like Reddit, fostering confidence in fortified market presence.

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Concluding Thoughts

Investor intrigue encapsulates the Reddit narrative—cut tethered by vigorous stock price fluctuations juxtaposed poignantly with development synergies. Reddit’s financial gemstones shine amidst obscurities, driven by strategic pivots and resource-fueled resilience. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This trading wisdom resonates well as the stock’s path unfurls, stitched by fleeting yet formative moments. Balancing on the beam of opportunity, the market awaits queries answered by Reddit’s coming strides, praying the glimpses into its future spark bullish horizons laden with promise and opportunity.

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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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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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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