Reddit Inc. (NYSE:RDDT) shares are extending Thursday’s rally into Friday’s session, building on gains sparked by comments from CEO Steve Huffman at a major technology investor conference.
- Reddit shares are trending higher. Why is RDDT stock advancing?
Huffman’s Conference Remarks Sparked Thursday’s Rally
Reddit stock took off Thursday during a session when Huffman sat down for a discussion at Goldman Sachs’ Communacopia + Technology Conference, a move that stood out against a broader market pullback that saw the Nasdaq lose 0.82% and the S&P 500 slip 0.50% that same day.
Speaking to attendees, Huffman said the company’s marching orders for roughly the next year and a half boil down to two things: bringing in more users and getting a better handle on keeping newcomers around once they sign up.
The Reddit chief also shared some fresh numbers on how people are using the platform, saying app installs that can’t be tied back to a specific marketing source now run into the hundreds of thousands every day. He added that over the prior quarter, Reddit users had cranked out a billion new posts and comments combined, a figure that alone represents roughly 4% of everything that has ever been published on the site.
Reddit’s Chart Shows a Stock Still Working Through Repair
That momentum is showing up on the chart too, though the bigger picture remains shaky. Shares have lost nearly 40% of their value over the trailing 12 months, and even though the stock currently sits a bit above its 20-day average near $155, it’s still lagging noticeably behind both its 50-day marker around $168 and its 200-day line closer to $174, evidence that the longer-term downtrend hasn’t been resolved.
Looking at the broader trend picture, sellers still appear to hold the upper hand, given that the 20-day average sits under the 50-day, and a death cross dating back to March, when the 50-day average dropped beneath the 200-day, remains a drag that has kept bounces from morphing into anything more durable. Momentum readings paint a calmer picture in the near term, though, with RSI parked at 49.91, right in neutral territory, a sign that neither buyers nor sellers currently have real control of the tape.
Looking ahead, $162.50 stands out as the level bulls need to clear, sitting just under the 50-day average where earlier rally attempts have fizzled, while $143.50 marks the support zone worth watching on the downside, positioned well above the stock’s 52-week low near $119.27.
RDDT Shares Are Edging Up
RDDT Price Action: Reddit shares were up 0.19% at $155.64 at the time of publication on Friday, according to Benzinga Pro.
Image: JarTee/Shutterstock
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