Reddit Inc (NYSE:RDDT) shares are trading higher Monday afternoon. Traders are likely reacting to a recent data-licensing deal and anticipating the company’s earnings report this Thursday. Here’s what investors need to know.
- Reddit shares are climbing with conviction. Why is RDDT stock surging?
What's Behind Reddit's Monday Surge?
The rally follows news from Wednesday that Reddit struck a data partnership with Nectar Social, granting access to Reddit's Data API for real-time consumer insights that Nectar will integrate into its enterprise platform.
Short interest has meanwhile ticked down in the latest reporting period, falling to 17 million shares from 17.51 million, with 12.07% of the float held short and about 4.57 days to cover based on average volume.
Reddit's data-licensing narrative is getting extra attention into earnings, with the company set to report on Thursday and Wall Street looking for $608.68 million in revenue and 58 cents in EPS.
Critical Levels To Watch For RDDT Stock
Reddit is trying to rebuild upside momentum after a March breakdown and a lower swing low that month, while the next upside test sits near the April swing high. The stock is trading 10% above its 20-day simple moving average (SMA) and 10.1% below its 100-day SMA, which points to a stronger short-term trend but a still-challenged intermediate trend.
The moving average convergence divergence (MACD), a trend/momentum measure, is above its signal line with a positive histogram, which leans toward improving upside pressure versus the prior downswing. The death cross in March (50-day SMA below the 200-day SMA) still hangs over the longer-term trend, even as the 20-day SMA remains above the 50-day SMA.
- Key Resistance: $168.50 — a level where rallies have recently had trouble pushing through.
- Key Support: $131.50 — an area where buyers have tended to show up on pullbacks.
What Is Reddit And How Does It Make Money?
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits."
Its community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines, and the business is largely built on advertising plus data licensing agreements.
That's why the Nectar Social Data API deal matters: it's another example of Reddit turning its authentic conversations into a product that enterprise customers can plug into analytics and marketing workflows.
Reddit’s Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Reddit, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 16.01) — The stock's recent trend strength is lagging, even with Monday's bounce.
- Value: Weak (Score: 14.29) — The market is pricing in a lot of optimism, which can raise the bar for execution.
- Growth: Strong (Score: 98.41) — The profile is still driven by high growth expectations versus the broader market.
The Verdict: Reddit,’s Benzinga Edge signal reveals a growth-heavy profile with weak value and weak momentum. That mix often means the stock can move fast on good news, but it may stay choppy if expectations cool.
RDDT Stock Price Movement On Monday
RDDT Stock Price Activity: Reddit shares were up 4.02% at $161.11 at the time of publication on Monday, according to Benzinga Pro data.
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