RDDT trade ideas
Reddit Stock Jumps in PreMarket Trading After OpenAI PartnershipReddit shares rose 14% on Friday following a partnership with artificial intelligence firm OpenAI, which is expected to attract more users and increase advertising revenue. The partnership allows Reddit to leverage OpenAI's technology to build tools and features, and integrate Reddit's content in real-time. This pact delivers on Reddit's "IPO promise of seizing opportunities to make more of AI," whether that's deploying the tech on its platform to improve the user experience or feeding its content into AI language models.
Reddit ( NYSE:RDDT ), which primarily generates revenue from advertising, is seeking to diversify its income streams. In a February filing, the company indicated its intent to explore new monetization channels, including offering creator tools and licensing its data to third parties. Reddit already has data licensing agreements with undisclosed parties that are projected to contribute at least $66.4 million in revenue this year. The license allows third parties to access, search, and analyze data on the platform.
With a daily active user count of more than 80 million, Reddit ( NYSE:RDDT ) is considered a smaller player in the social media market. The company went public on the New York Stock Exchange on March 21, and its shares have gained 66% from their IPO price of $34 a piece.
Under the partnership, Reddit ( NYSE:RDDT ) will give OpenAI access to its API to train AI models in exchange for certain OpenAI-powered features being offered to Reddit’s users and moderators. Additionally, Reddit will add OpenAI as an advertising partner.
Investors reacted warmly to the latest licensing partnership announced Thursday as it indicates the social media company continues to diversify revenue outside its traditional advertising business. OpenAI co-founder and CEO Sam Altman is no stranger to Reddit, having led the social media company’s $50 million Series B funding round in 2014 and investing an additional $60 million over two financing rounds at the height of the pandemic-era tech rally.
Reddit shares ( NYSE:RDDT ) jumped out of the gate after listing in late March but quickly ran into selling pressure after more than doubling from their $34 initial public offering (IPO) price. A volume-backed breakout above the stock’s record high at $74.90 opens the door for the shares to move into uncharted waters and test higher price levels.
Technical Outlook
Reddit shares ( NYSE:RDDT ) is up 12% in Friday's Pre-market trading with a moderate Relative Strength Index (RSI) of 54.97 which is poised for further growth. The daily price chart depicts a bullish Harami pattern. An upside gapping will evolve as a result of the partnership news.
Reddit Shares Jumped 7% on Tuesday Following Memestocks CrazeReddit shares ( NYSE:RDDT ) closed at $62.34, marking its second-highest close since its IPO in March. The rally began on Monday when Keith Gill, the man who inspired the meme stock mania of 2021, resurfaced online, sending shares of GameStop and AMC soaring. Gill shared a picture on X that showed a video gamer sitting forward on a chair, which is often used by gamers to signal they're taking the task seriously. As of Tuesday's close, the post has been viewed more than 25 million times.
Reddit ( NYSE:RDDT ) played a central role in the meme stock boom three years ago, largely due to the forum WallStreetBets, where traders gather to share tips and, in some cases, band together to drive a stock up or down. GameStop mentions ballooned on WallStreetBets on Monday after Gill's post. The image and a series of other cryptic posts were enough to lift GameStop and AMC by more than 100% in the past two trading sessions. Other stocks that have been bunched in with the meme group rose, including BlackBerry, Koss, and SunPower.
Notable Research Analyst Andrew Boone said he didn't see any fundamental reason for Reddit's rally, but an increase in user activity would help boost the company's advertising business. At the end of the day, more users mean more impressions, which means there are more ads for them to sell. Reddit, ( NYSE:RDDT ) founded 19 years ago, debuted on the New York Stock Exchange on March 21 at $34 a share and ran up as high as $65.11 on March 26.
Technical Outlook
Reddit Shares ( NYSE:RDDT ) shares closed Tuesday's trading session up 7.13% with a Relative Strength Index (RSI) of 60.60, slightly overbought. The 50-day Moving Average crosses the 20-day Moving Average, signaling the exhaustion of downward market momentum.
RDDT in a rising wedge pattern with bearish move coming?Strong resistance at $50, with what looks like a rising wedge pattern. Possible bearish movement in store?
Reddit Shares jump 10% After Revenue Pops in First-ever EarningsReddit shares ( NYSE:RDDT ) rose 10% after the social media platform posted strong revenue growth and improved profitability in its first earnings report since its market debut. The company surprised Wall Street with a forecast that it could post an adjusted profit in the second quarter, and its revenue outlook was far above estimates. Reddit's revenue for the first quarter was $243 million, a 48% increase from the $163.7 million it earned a year earlier. $222.7 million of this was from ad revenue alone, which was up 39% year-over-year.
Meta's ad revenue jumped 27% in the first quarter, followed by a 24% increase at Amazon and just 13% growth at Google-parent Alphabet. Reddit reported a net loss of $575.1 million, with stock-based compensation expenses and related taxes being $595.5 million, primarily driven by charges due to the initial public offering.
Reddit ( NYSE:RDDT ) expects revenue to be between $240 million and $255 million in the second quarter, topping the $224 million expected by analysts. The midpoint of the guidance range suggests growth of about 32% for the second quarter, up from $183 million from a year earlier. Analysts believe that Reddit ( NYSE:RDDT ) is still in the early stages of generating ad revenue and should benefit from expanded ad targeting and measurement tools. The company's more than 100,000 discussion forums have made it an attractive partner for companies looking to train their data-hungry AI models.
Technical Outlook
Reddit stock ( NYSE:RDDT ) is trading with a Relative Strength Index (RSI) of 50.62 a reversal might be possible after the earnings review the stock daily price chart shows a "Three Bearish black crows" which are are potential signs of a trend reversal.
5/7/24 - $rddt - dump it5/7/24 - vrockstar - 8 bn + on a complicated capital stack - an obviously "distributed" IPO (you still hold the bag? why?) and 8x sales on lofty 20-25% cagr revenue numbers (we all know these will get revised downward - banks need to shine up the pump to sell the deal fam). frankly, burning one of my posts to warn you all that if you own this, it might be a good time to simply check your conviction and/or size. i think there are a number of better cash generating co's (this doesn't fam...) with superior growth. we're still in price discovery and the discovery will be in the 20s, k. b safe.
RDDT shortLooking at reddit for lower prices. Distribution model in progress. would be invalidated above 44$
REDDIT $RDDT - Apr. 3rd, 2024REDDIT NYSE:RDDT - Apr. 3rd, 2024
BUY/LONG ZONE (GREEN): $50.50 - $56.75
DO NOT TRADE/DNT ZONE (WHITE): $46.00 - $50.50
SELL/SHORT ZONE (RED): $40.00 - $46.00
Not enough data to list 4H, Daily, or Weekly trend directions.
ATH: 74.90
ATL: 44.00
Wanted to chart up NYSE:RDDT after the IPO and radical price movement. There is not enough data to show any form of trend direction on my usual timeframes, so I dropped to the 1H. Because of the lack of historical data, I was using the all-time high and all-time low prices for level references. The bearish target is $40.00, roughly 10% below the all-time low, as price is closely trading in that area at this time. The bullish zone is purposely around the same size as the bearish zone, but can be extended to around the $63.50 level.
This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas.
EDUCATIONAL/ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE!
trendanalysis, trendtrading, priceaction, priceactiontrading, technical indicators, support and resistance, reddit, NYSE:RDDT , rddt, redditstock, redditipo, ipo, rddtipo, redditdirection, reddittrend, redditlong, redditshort, reddittrade, redditstory, redditpost,
Is ReDDiT Ready to Launch? Decoding the WavesReddit has deceived the IPO buyers but the chart might be hinting at a turnaround.
Elliott Wave theory suggests a possible 5-wave downtrend is ending. The current rise could be a wave 1 up before the real rise.
Keep an eye on $47.50! If price breaks above this resistance level, things could get bullish, with a potential reach towards $58-$60 at first with a new high potential afterwards.
Not so fast though! If the price stays below $47.50, the downtrend might not be over and I shall consider this move as a counter trend rise and try to short it as we could see a drop to $38 or even lower if we see an extended fifth which could happen if the rest of the market starts to accelerate to the downside.
How to trade the bullish view : If price breaks above $47.50, I will use a consolidation or pullback to buy. This consolidation would indicate buying pressure after the breakout and offer an entry opportunity. Simply put, I shall wait for a wave 2.
Remember, always maintain a stop-loss, for exemple below key support or the low of the breakout day to manage risk in case price reverses.
What are your thoughts on RDDT? Share your analysis in the comments below!
(Please abstain from comments like 'lol', 'okay' or other comments that bring nothing to the discussion...)
(RDTT) Intraday Analysis: A Tug of War Between Bulls and bearsAs the trading session unfolds, Reddit, Inc. (RDTT) presents a battlefield where bulls and bears are locked in a tenuous struggle for dominance, as evidenced by the hourly chart indicators. The stock price, currently at $47.56, teeters at the precipice of a potential breakout or breakdown.
The Ichimoku Cloud paints a picture of resistance and support, with the price action just below the cloud, indicating a bearish bias in the near term. The cloud's future projection appears to widen, suggesting increased volatility in the upcoming hours. The price's proximity to the lower boundary of the cloud could insinuate a testing ground for the bulls' resolve.
Fibonacci retracement levels, traced from a high of $48.16 to a low of $47.53, reveal that the stock is flirting with the 23.6% retracement level. A sustained move above this level could catalyze a push towards the 38.2% level at $47.79, which stands as an intermediate hurdle before the 50% retracement at $47.85.
The Moving Average Convergence Divergence (MACD) showcases a recent bullish crossover, with the MACD line (blue) ascending above the signal line (orange). This bullish signal, however, is still in its nascency and requires further bullish volume to confirm a trend reversal.
The Relative Strength Index (RSI), perched at 48.33, hovers near the neutral 50 mark, signifying a balance in market momentum. This neutrality calls for vigilance, as a move above 50 could be indicative of emerging buying pressure, while a dip below could signal increased selling activity.
Complementing this is the Stochastic oscillator, which presents an intriguing conundrum as the %K line has just crossed above the %D line, signaling a potential increase in upward momentum. Yet, this indicator alone is not sufficient for a confirmation of trend change and should be scrutinized in tandem with other metrics.
Lastly, the On-Balance Volume (OBV) metric has declined slightly, reflecting a modest decrease in buying volume. This indicator will be essential to monitor for signs of either accumulation or distribution, as a significant change could precede price action.
Speculative Forecast:
In the short term, RDTT's price action suggests a cautious outlook. A break above the Ichimoku Cloud could initiate a near-term bullish target at $47.85 (50% retracement), with further room to ascend towards $48.00 (61.8% retracement). Conversely, failure to breach the cloud may see a retest of support levels, potentially revisiting recent lows near the $47.50 zone.
Traders are encouraged to closely observe the confluence of the aforementioned technical indicators for a more comprehensive bias confirmation. Given the stock's current posture, a definitive directional move is yet to materialize, and as such, the intraday strategy should remain fluid and adaptable to the rapid shifts characteristic of the current market landscape.
Waiting and not chasing...ABCD pattern
Adjusting SL as the price and volume increase
IPO so trading with caution
M shape formingSome form of double top, lower high, or slightly higher high is forming IMO.
Since this is so new you have to go do the 5 minute chart, which for some reason tradingview will not allow me to publish.
but if you go there, the RSI is bullishly diverging for another attempt of up.
After the double top is in place then big down only. Nice swings INC :)
Reddit Shares Surge Following Options LaunchThe shares of social media platform Reddit ( NYSE:RDDT ) surged by 14% on Tuesday, building upon the momentum generated by the recent launch of options trading on the stock. With each share currently valued at $67.5, Reddit ( NYSE:RDDT ) is poised to witness a substantial increase in its market value, with more than $1 billion set to be added to the company's worth. Notably, the stock is on track to nearly double its IPO price of $34, marking a significant milestone in its journey as a publicly traded entity.
The surge in Reddit's ( NYSE:RDDT ) stock price can be attributed to the enthusiastic response from investors following the introduction of options trading. Jeremy Goldman, senior director of client briefings at Emarketer, formerly Insider Intelligence, commented on the phenomenon, stating, "More bullish investors have bought options in Reddit, which is part of its early stock market success in its first full week of trading."
Indeed, the launch of options trading has fueled bullish sentiment towards Reddit ( NYSE:RDDT ), as evidenced by Monday's trading activity, where the stock closed up approximately 30%, emerging as the top percentage gainer on the New York Stock Exchange. Goldman further elaborated on the surge in options activity, estimating that around 90,000 options have changed hands, underscoring the heightened interest among investors in leveraging Reddit's potential for further growth.
The current gains in Reddit's share price not only reflect investor optimism but also position the company to surpass the $10 billion valuation it attained in a private fundraising round in 2021. This resurgence in Reddit's market value underscores the platform's growing influence and relevance in the digital landscape, as it continues to attract both users and investors alike.
As Reddit ( NYSE:RDDT ) navigates through the evolving dynamics of the stock market, the success of its options trading debut signals a new chapter in its trajectory as a publicly traded company. With investors displaying confidence in its growth prospects, Reddit ( NYSE:RDDT ) stands poised to capitalize on its momentum and solidify its position as a key player in the social media and technology sectors.
Alright ... all set for 300 runReddit will lead the retail mania along with AI and Crypto. This can run hard towards 300 with in 6 months. Hard stop loss 60.
RDDT Guessmarket makers could be trapping moonboys, then initiate a merciless shakeout.
what do you think at the second day of RDDT?
Reddit Braves Wall Street with 48% Pop in Debut. When Growth?Traders upvoted Reddit’s IPO but can the buzzing social media platform earn its stripes as a public company now?
Table of Contents:
⦿ Reddit Surges in Public Market Kickoff
⦿ If Wall Street Bought, Should You?
⦿ Reddit Stacked Up Against Rivals
⦿ Ad Posts Looking Like User Posts?
⦿ Bottom Line
📍 Reddit Surges in Public Market Kickoff
Reddit (ticker: RDDT ) stepped into the public-market space this week with a flashy and splashy IPO (initial public offering) in New York that chalked up a 48% gain on its debut day. The listing was met with lots of cheer from Wall Street as it was the biggest one for a social media company since Pinterest hit exchanges in 2019.
Shares of Reddit surged to $47 out of the gate to make its first deals at a 38% premium to the company’s IPO price of $34 a share. Valuation soared to $9.5 billion by the end of the session when shares closed at just over $50 a pop.
Reddit’s listing day with the Snoo—the website’s official mascot. Source: Reddit.
By the looks of it, investors upvoted Reddit—a chat-room powerhouse and a stalwart of community-based culture venues sprawling from cat-praising r/CatsInSinks and owl-loving r/Superbowl to the intimidating trading hub r/wallstreetbets that bankrupted GameStop short-seller Melvin Capital.
📍 If Wall Street Bought, Should You?
So the question is, if Wall Street scooped up Reddit shares… should you?
Let’s take a behind-the-curtain look at Reddit’s business model.
It’s been three years of trying for Reddit to get listed on the New York Stock Exchange. Finally, it issued 22 million shares for flotation, of which 8%—or 1.8 million—were reserved for friends, family and volunteer moderators. Those are unpaid users who make sure all the online communities are running smoothly. And they are also the content creators, because—unlike Netflix (ticker: NFLX ) or Spotify (ticker: SPOT )—Reddit doesn’t pay for its content.
The platform boasts roughly 73 million daily active users spread across 100,000 online chat rooms, or “subreddits.” Despite the wide reach and 19 years of existence, the platform has never seen what a profitable year looks like.
Its revenue comes predominantly from selling ads to companies who paid $804 million last year while the bottom line arrived at a $91 million loss. The revenue figure was a 20% increase from the $668 million picked up in 2022.
📍 Reddit Stacked Up Against Rivals
And while revenue growth can be seen along the years, investors are betting that Reddit will ultimately catch up to the big shots in the social-media space. When Meta (ticker: META ), formerly Facebook, kicked off its public endeavors in 2012, it soaked up a market value of $104 billion and raised $ $16 billion for its IPO. Elon Musk’s X Corp, formerly Twitter, landed its first public deals at a $14 billion valuation, having raised $1.8 billion. In comparison, Reddit raised $748 million at an IPO valuation of $6.4 billion.
Reddit carries the lowest valuation at IPO among social media peers.
📍 Ad Posts Looking Like User Posts?
Against that backdrop, Reddit is taking a sketchy approach to bolstering its ad sales. Apparently, the folks at the upper echelons of the company decided it’s a good idea to make ad posts look exactly like user posts . The so-called “free form ads”, the company said, will mimic the popular user post type “megathread” and will “encourage users to deep dive into the topic at hand.”
The community, on the other hand, didn’t show much love to that new advertising strategy. “Enable comments on ads, you cowards,” said one Reddit user while related threads were loaded with users’ comments of disapproval.
📍 Bottom Line
And there you have it, 19 years of posts, 100,000 subreddits, and 73 million users who churn out all the content and self-sustain operations. Reddit gave us the meme stock craze back in 2021. Is it going to give us a rerun of the stock frenzy with its own shares this time? Or will the folks at r/wallstreetbets flip the script and short it?
💬 Let us know your thoughts in the comment section below!
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Patience Is the KeyNYSE:RDDT
Wait for the dip before buying ( around $35.54) and hold for this to cross $59.95, confirmation towards $70.87.
P.S look out for the short squeeze
Reddit Shares Surged 38% Above IPO Price, Market Cap Nearly $9BIn a resounding debut on the New York Stock Exchange, social media powerhouse Reddit ( NYSE:RDDT ) saw its shares skyrocket 38% above its initial public offering (IPO) price, propelling the company's valuation to nearly $9 billion. The impressive market reception underscores investors' renewed appetite for promising yet loss-making companies and signals a potential resurgence in the IPO market.
Investor Frenzy Amidst Losses:
Despite Reddit's track record of annual losses since its inception in 2005, investors flocked to the company's IPO, enticed by its strategic positioning as a training ground for artificial intelligence (AI) programs. The recent data licensing deal with Google further fueled investor optimism, highlighting Reddit's potential for monetization beyond traditional advertising revenue streams.
Growth Trajectory and Market Dynamics:
Reddit's ( NYSE:RDDT ) growth narrative centers around its commitment to expanding its user base and community engagement, positioning itself as a growth-oriented company despite its financial losses. With shares trading well above its IPO price range and reaching late trading highs, Reddit's ( NYSE:RDDT ) market performance serves as a litmus test for investor sentiment towards high-growth, yet unprofitable, companies.
Challenges and Roadmap to Profitability:
While Reddit's iconic status in the social media landscape is undeniable, the company faces challenges in monetizing its platform and achieving profitability. Analysts and investors alike will closely scrutinize Reddit's strategy for achieving long-term profitability, particularly amidst intensifying competition from industry giants like Meta Platforms' Facebook and Elon Musk's X.
Retail Allocation and Community Engagement:
Reddit's decision to reserve shares for eligible users, moderators, and retail investors underscores its commitment to rewarding its dedicated community members. However, analysts caution that such retail allocations come with inherent risks, particularly in light of Reddit's fluctuating financial performance and uncertain path to profitability.
Cultural Impact and Future Prospects:
Beyond its financial metrics, Reddit's cultural impact and role as a cornerstone of social media culture cannot be overstated. From hosting iconic "AMA" sessions with notable figures like former President Barack Obama to serving as a hub for community-driven movements like the "meme-stock" saga of 2021, Reddit ( NYSE:RDDT ) occupies a unique position in the digital landscape.
