RDDT wows the market with earnings!

Feature Story

Technical Analysis

Reddit Inc reported earnings today (7/31/25) beating expectations and sending the stock up 18% after hours. Reddit’s Q2 ‘25 revenue hit $500M when estimates only projected $425.69M. Q3 revenue projections are expected to be between $535M and $545M. This was mostly due to its advertising revenue which grew by 84% year over year and a total active advertiser count expanding by over 50%.

Reddit went public back in March of 2024 and stayed below $100 until earnings in October of 2024 when it finally shot it up to about $117. You can see this in the daily chart above. Since then, RDDT peaked at $230.41 and then began to fall back to sub $100 before leveling back out in the middle at todays closing price of $160.59. After today’s earnings the price of RDDT as of writing this article is $189.30 a full 25% day’s gain.

Now take a look at the daily chart below. Here you can see how RDDT was following a trend line up to a resistance line of about $164.50. This was looking pretty bullish even before earnings were reported due to the higher lows and the retest of that resistance today. I also put in where the new price is after earnings. You can see how that blew past the resistance line and is actually at a nice support level if RDDT can open at this price or a little higher tomorrow morning.

From here what I’d like to see is a new bullish signal created above $189 to help propel the stock back over $200. This is doable based on the guidance that the company gave with their earnings. It may not be a quick move, but it is an optimistic one.

A good entry point here may be tricky. RDDT is getting close to it’s ATH again and we may begin to see profit taking depending on how the market reacts to the earnings tomorrow. Again, I’d like to see this be the new base and say this is a good place to enter, but if the market pulls back a little tomorrow we can see a possible pull back to maybe the $175. I only think it will come back that far if other outside news brings the whole market down as well.

A Final Note

Tomorrow is a big day for the market. At midnight tonight, Trump is expected to sign more tariffs into action with countries who did not make a trade deal. This could cause the market to pull back like it did on the first “liberation day”. If this happens, it could erase the gains that a lot of companies like Reddit saw today from their earnings. Just be careful playing tomorrow and trying to add to any portfolio. Hopefully there isn’t much immediate impact. Maybe waiting the weekend out might be the play to see what happens.