Reddit (RDDT) Stock Price, Chart, Company Profile & AI Analysis
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests... Show more
Why Reddit (RDDT) Stock Is Down -38.5% in the Last 30 Days
Key Takeaways
- Reddit (RDDT) shares fell roughly 38.5% over the past 30 days, sliding from about $147.86 to around $90.97, driven largely by a sharp post-earnings selloff.
- Third-quarter revenue rose 53% year over year to $895 million and diluted EPS reached $1.40, both ahead of estimates, but softer forward guidance dominated the market reaction.
- Declining search referral traffic, tied to the expansion of AI-generated search summaries, is the central concern weighing on user growth and investor sentiment.
- U.S. daily active unique users slipped 2% year over year to 50.7 million, and management cautioned fourth-quarter daily users could decline by a low-double-digit percentage.
- On October 30, 2026, the stock dropped about 29% in a single session, its worst one-day decline on record.
- Several analysts lowered ratings and price targets after the report, including KeyBanc, Oppenheimer, Cantor Fitzgerald, and Needham.
- For additional detail on Reddit's valuation and outlook, explore its Price Targets, Earnings, and Forecast pages.
- Discover top-performing automated trading strategies in the Trending AI Robots section.
Reddit (RDDT) Company Overview and Market Position
Reddit, Inc. operates one of the internet's largest community and discussion platforms, built around more than 100,000 active subreddits spanning virtually every topic. Founded in 2005 and headquartered in San Francisco, the company generates the large majority of its revenue from advertising, which accounted for $847 million of its $895 million in third-quarter revenue. The remainder comes primarily from data-licensing agreements that give third parties, including AI developers such as Google and OpenAI, access to platform content, along with premium subscriptions and virtual goods. Reddit was added to the S&P 500 index in August 2026 and trades on the NYSE under the ticker RDDT. Investors follow the stock for its high-intent user content, growing advertising monetization, and exposure to the AI data-licensing theme.
Reddit (RDDT) Stock Price Performance: Last 30 Days vs. Quarter
Over the last 30 days, RDDT declined approximately 38.5%, falling from a closing price of about $147.86 to around $90.97. The bulk of that move occurred in a single session on October 30, 2026, when the stock fell about 29% following third-quarter results. The quarterly trend is similarly negative. From an early-August close near $154.71, the shares are down roughly 41%. The stock briefly spiked toward $178 in mid-August after its second-quarter report but then entered a sustained multi-month downtrend, ending the period near $91. On a year-to-date basis, Reddit shares have lost roughly 63% and trade more than 60% below their 52-week high.
What Drove RDDT Stock Price in the Last 30 Days
The primary catalyst was Reddit's third-quarter earnings report, released after the market close on October 29, 2026. While revenue of $895 million, up 53% year over year, and diluted EPS of $1.40 both beat consensus estimates, forward guidance fell short. Management guided fourth-quarter revenue to $1.00 billion to $1.03 billion, below the roughly $1.05 billion analysts had expected, and projected adjusted EBITDA of $480 million to $510 million. More concerning to investors was disclosure that search referral traffic had declined meaningfully, falling by more than one million weekly visits in October as Google's AI search features reduced outbound clicks. CEO Steve Huffman warned that if the trend continued, fourth-quarter daily active unique users could fall by a low-double-digit percentage from the roughly 130 million base. U.S. daily active unique users declined 2% year over year to 50.7 million, and the company said it would test a logged-in experience in select markets outside the U.S. The combination triggered a wave of analyst actions: KeyBanc downgraded the stock to Sector Weight, Oppenheimer moved to Perform, Cantor Fitzgerald cut its price target from $170 to $120, and Needham reduced its target from $300 to $150.
What Drove RDDT Stock Performance Over the Last Quarter
The broader quarterly decline reflects a de-rating of high-valuation, high-growth internet stocks alongside building concerns about AI-driven disruption to search traffic. Rising Treasury yields, with the 10-year yield climbing above 5%, pressured long-duration growth equities and communication services names specifically. Reddit's own second-quarter report in August initially lifted the stock, but profit-taking and sector rotation quickly erased those gains. Over the ensuing months, investors increasingly questioned the durability of Reddit's traffic funnel as generative AI search tools began answering queries directly rather than referring users to external sites. That concern, disclosed and quantified by management during the October earnings call, transformed a long-running bear thesis into an operating reality and drove the stock to multi-year lows.
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RDDT Stock Forecast Drivers: What Investors Should Watch Next
Looking ahead, the most important inputs will be user growth and search referral trends. Reddit is expected to report fourth-quarter results in early 2027, and investors will focus on whether daily active unique users stabilize or decline, whether U.S. user counts recover, and whether average revenue per user continues to expand. The company's logged-in testing in international markets will also be scrutinized for its effect on engagement and monetization, given that logged-in and app users account for more than 80% of revenue. Data-licensing renewals with major AI partners, advertising demand, and the broader interest-rate environment are additional factors that could influence the stock's trajectory. These developments carry both upside and downside risk, and none of them constitute investment advice.
Disclaimer
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RDDT in +2.21% Uptrend, growing for three consecutive days on October 12, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where RDDT advanced for three days, in 132 of 144 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
RDDT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RDDT as a result. In 29 of 37 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for RDDT turned negative on October 23, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 25 similar instances when the indicator turned negative. In 22 of the 25 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
RDDT moved below its 50-day moving average on October 21, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for RDDT crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 5 of 6 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RDDT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 33 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.327) is normal, around the industry mean (1.066). P/E Ratio (19.819) is within average values for comparable stocks, (-46.875). Projected Growth (PEG Ratio) (0.714) is also within normal values, averaging (17.274). Dividend Yield (0.000) settles around the average of (0.984) among similar stocks. P/S Ratio (11.507) is also within normal values, averaging (71.888).
The Tickeron Price Growth Rating for this company is 89 (best 1 - 100 worst), indicating slightly worse than average price growth. RDDT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RDDT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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