Key Points
Reddit, Inc. (RDDT) advanced decisively in today’s session, with shares climbing from a prior close of $222.75 to $235.00, gaining 5.50% on the day. The move adds $12.25 in market value per share and continues a constructive stretch of trading for the Media and Entertainment name. The rise unfolded on below-average activity, suggesting steady demand rather than a rush of short-term trading. Even with today’s strength, RDDT remains 17% below its 52-week high of $282.95, preserving potential room for further catch-up if momentum persists.
The tone was firmly bullish, with buyers in control for most of the session and dip-buying interest evident on minor pullbacks. Price action skewed positive from the open, and the advance held into the close, an encouraging sign that reflects growing confidence ahead of upcoming catalysts. A close well above the prior day’s level also improves the short-term trend and keeps sentiment leaning favorable.
From a technical perspective, the stock’s ability to gain ground without outsized volume can indicate accumulation by patient investors rather than one-off speculative spikes. That backdrop, combined with the stock’s distance from its September peak, frames today’s move as part of a broader attempt to reestablish an upward trajectory. Overall, the tape showed healthy momentum, with RDDT demonstrating resilience and follow-through that investors often look for when assessing whether a bounce has legs.
Why Reddit, Inc. Price is Moving Higher
RDDT’s jump to $235.00 reflects a combination of improving fundamentals and constructive sentiment. At a $42.21B market cap and trailing EPS of $1.74, the company is positioned as a scaled digital platform with measurable earnings power. Volume registered 3,281,644 shares versus a 90-day average of 6,266,862, indicating the advance came on below-average trading activity—often a sign of deliberate positioning rather than momentum-driven excess. With the shares still 17% below the $282.95 high, investors appear to be focusing on upside potential if execution continues.
A key driver behind today’s bullish tone is anticipation surrounding Reddit’s upcoming Q3 2025 earnings report scheduled for tomorrow (Saturday, Dec. 6). Consensus calls for $0.52 EPS on $549.12 million of revenue. This pre-earnings positioning follows a strong track record: in October, Reddit beat Q2 expectations with $0.80 EPS versus $0.50 consensus and revenue of $584.91 million versus $546.65 million expected. The company also reported 67.9% year-over-year revenue growth and an 18.33% net margin—figures that reinforce confidence in its operating model.
Momentum is also supported by sequential revenue acceleration. The latest reported quarter (09/30/2025) delivered $584.91 million, up from $499.63 million in the prior quarter (06/30/2025), a 17.1% increase. That growth cadence, coupled with evidence of operating leverage, helps explain why investors are leaning in ahead of results. While valuation will remain a discussion point, the combination of bullish momentum, rising revenues, and earnings strength suggests RDDT is favorably positioned into its print. Today’s bid reflects that improving setup and opens the door for further gains if the company extends its streak of estimate-beating execution.
What is the Reddit, Inc. Rating - Should I Buy?
Weiss Ratings assigns RDDT a C rating. The stock was recently downgraded on 11/19/2025. Current recommendation is Hold.
The rating is built on five indices: the Excellent Growth Index (measures revenue and earnings expansion) highlights strong top-line momentum, including 67.91% revenue growth. The Fair Efficiency Index (measures operational effectiveness and profit margins) aligns with an 18.33% profit margin and 15.22% ROE, indicating solid but not best-in-class profitability. The Excellent Solvency Index (measures financial health and debt management) underscores balance sheet strength that supports ongoing investment.
The Fair Total Return Index (measures stock price appreciation plus dividends) reflects average risk-adjusted performance despite notable rallies. The Weak Volatility Index (measures price stability and risk) flags higher-than-market swings, an important consideration for position sizing and time horizon. Valuation is part of this balance: a 128.25 P/E implies investors are paying up for growth, which the indices treat as achievable but not without risk.
Relative to peers in Communication Services, RDDT’s C compares with DIS (C+), SPOT (C+), and CMCSA (C-). That places Reddit near the middle of the pack—outperforming more conservative incumbents on growth, while lagging some peers on stability and total return consistency. The mix suggests investors are being compensated for growth but must tolerate episodic volatility.
Bottom line: the C (Hold) captures a balanced risk/reward. Excellent Growth and Solvency support the case, while Fair Efficiency and Total Return plus Weak Volatility temper it. The net result is average prospects on a risk-adjusted basis, appropriate for a Hold stance.
About Reddit, Inc.
Reddit, Inc. operates a global, community-centric platform where users discover, discuss, and share content organized into interest-based communities known as “subreddits.” As a leader in the Media and Entertainment industry within the Communication Services sector, the company connects people around topics ranging from news and finance to sports, gaming, and lifestyle. The platform’s core mechanics—posting, commenting, and voting—surface the most relevant conversations, while community-driven moderation helps maintain quality and context across millions of daily interactions.
The company monetizes primarily through advertising, offering a suite of solutions that include promoted posts, video ads, and performance formats integrated into the feed, search results, and community pages. Advertisers can target by interest, context, and community, leveraging brand-safe environments and measurement tools designed to align with campaign objectives from awareness to conversions. Reddit supports both self-serve and managed campaigns, giving small businesses and large brands the flexibility to scale spend and optimize outcomes.
Beyond advertising, Reddit continues to invest in product innovation across its web and mobile apps, with features that enhance discovery, highlight real-time conversation, and encourage creator participation. The company offers a premium subscription that adds perks for power users and deepens engagement. It also maintains developer tools and data access via APIs, supporting third-party integrations and potential data-licensing opportunities. With a diversified community graph and a reputation for authentic, user-generated discourse, Reddit’s competitive advantages include highly engaged audiences, niche community depth, and a feedback loop that helps advertisers and creators tap into timely culture and intent-rich conversations.
Investor Outlook
With RDDT trading at $235.00 and building momentum ahead of its earnings event, the setup remains favorable for investors seeking exposure to a scaled community platform with strong growth credentials. The C (Hold) rating supports a constructive, yet balanced view that recognizes both opportunity and volatility.
See full rankings of all C-rated Communication Services stocks inside the Weiss Stock Screener.