What’s Going On With Reddit Stock Tuesday?

by | Feb 3, 2026 | General

Reddit, Inc. (NASDAQ:RDDT) stock is up during premarket trading on Tuesday as the company prepares to release its fourth-quarter and full-year 2025 financial results.

Reddit’s Q4 Earnings Call Scheduled

Reddit will host a conference call on Feb. 5 to discuss its financial results. The broader market experienced gains on the previous trading day, with the Technology sector rising 0.58%.

Reddit’s Stock Indicates Bearish Trend

Currently, Reddit is trading 19.1% below its 20-day simple moving average (SMA) and 17.4% below its 100-day SMA, indicating a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 12.44%, and the stock is currently positioned closer to its 52-week lows than highs, reflecting ongoing challenges in maintaining upward momentum.

The RSI is at 27.71, which is considered oversold, suggesting that the stock may be undervalued at this time. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.

The combination of oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the current trend remains negative.

  • Key Resistance: $213.00
  • Key Support: $178.00

Reddit’s Earnings Expectations and Analyst Views

  • EPS Estimate: $0.94 (Up from $0.36 YoY)
  • Revenue Estimate: $667.33 million (Up from $427.71 million YoY)
  • Valuation: P/E of 81.6x (Indicates premium valuation)

Analyst Consensus & Recent Actions:

The stock carries a Buy Rating with an average price target of $227.90. Recent analyst moves include:

  • Roth Capital: Neutral (Raises Target to $215.00) (Jan. 30)
  • Guggenheim: Buy (Maintains Target to $245.00) (Jan. 23)
  • Morgan Stanley: Overweight (Raises Target to $265.00) (Jan. 13)

Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 161% expected earnings growth suggest analysts view this growth as justification for the 33.52% upside to analyst targets.

Reddit’s Benzinga Edge Scorecard Analysis

Below is the Benzinga Edge scorecard for Reddit, highlighting its strengths and weaknesses compared to the broader market:

  • Value: Weak (Score: 7.42) — Trading at a steep premium relative to peers.
  • Momentum: Weak (Score: 13.96) — Stock is underperforming the broader market.

RDDT Price Action: Reddit shares were up 2.17% at $181.00 during premarket trading on Tuesday, according to Benzinga Pro data.

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