Shares of Reddit Inc (NYSE:RDDT) are surging on Tuesday. The move follows a major strategic partnership and a broader lift in the communication services sector.
New Strategic Ad Partnership
Reddit and Pacvue announced a partnership Tuesday to bring Reddit Ads into Pacvue’s Commerce Operating System. The integration launches this spring. It combines Reddit’s community reach with Pacvue’s AI-powered platform. Enterprise brands can now optimize Reddit Ads alongside retail media.
According to Rahul Choraria, CEO of Pacvue, the partnership aims to make Reddit’s consumer influence easier to “operationalize at scale.”
High-Intent Audience Growth
Reddit currently attracts 121 million daily active unique visitors. According to Reddit for Business, 90% of users trust the platform for product discovery.
The Pacvue integration allows for enterprise-scale campaign management and advanced audience activation. Brands can now manage budgets and creative intelligence within a single governed system.
Broader Market Tailwinds
The surge coincides with a green day for the markets. The Nasdaq gained 0.47% while the S&P 500 rose 0.35%. The State Street Com Svc Sel Sec SPDR ETF (AMEX:XLC) also traded higher by 0.67%.
Rising Short Interest: Benzinga reports short interest in RDDT increased during the last period. Short interest rose from 17.15 million to 18.47 million shares. Currently, 15.7% of the company’s float is held short. Based on average volume, it would take 3.62 days for short sellers to cover positions.
Technical Analysis
Reddit is trading 2.3% above its 20-day simple moving average (SMA) but remains 25.3% below its 100-day SMA, highlighting a short-term bounce within a broader downtrend.
Shares are up 16.23% over the past 12 months, and the stock is currently positioned closer to its 52-week lows than highs within the $79.75 to $282.95 range.
The RSI is at 41.49, which sits in neutral territory. Meanwhile, MACD is at -9.6972 versus a signal line of -11.2782.
- Key Resistance: $156.50
- Key Support: $127.50
Price Action: At the time of publication Tuesday, Reddit shares are up 4.11% at $145.76, according to Benzinga Pro data.
Photo: JarTee / Shutterstock
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