RDDT – Earnings Just Dropped. 69% Revenue Growth. $169 Is the Tr

Reddit just reported and the numbers were not close. This was a blowout.
Revenue up 69% to $663 million. EPS came in at $1.01 — Wall Street was expecting $0.56. That's a 79% beat on the bottom line. Seven consecutive quarters of revenue growth above 60%. And they guided Q2 revenue to $720 million, above what analysts were expecting.
The stock is reacting. Now the question is whether the chart confirms it.
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THE SETUP
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$169 is the level I'm watching on the daily chart. That's the trigger.
I'm not chasing the gap tomorrow. What I want to see is the stock come up and test $169, build a small base or tight consolidation right under it, then break through on volume. That's the high-probability version of this trade. A gap-and-go attempt on a name that just ran hard is a coin flip. A base-and-break after a strong earnings reaction is a setup.
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WHY RDDT HAS LEGS
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Google and OpenAI are paying Reddit for data licensing. Reddit has 25 billion posts and comments sitting on its platform — the CEO called it "oil for the modern internet." Every AI company needs that data. That licensing revenue stream is just getting started and it's essentially pure margin.
Ad revenue grew 74% this quarter. Active advertisers up 75%. Free cash flow margin hit 47% on just $1 million in capex. This is a capital-light business that is scaling fast.
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TRADE PLAN
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Trigger: Break and hold above $169 on volume
Entry: After small base forms under $169, on the breakout candle
Stop: Below the base low or 9 EMA at time of entry
Timeframe: Swing
Not in yet. Watching $169 closely.