NEW YORK – Shares of the social media platform Reddit, Inc. (NYSE: RDDT) are experiencing an exceptionally volatile trading day, characterized by a massive morning rally followed by a significant reversal. The stock is currently trading at 5.59 (+3.67%) on the day as of 12:21 PM EDT.
The session began with an explosive move upwards right at the market open. After opening near its previous close of 164.55** in the first hour of trading. However, this peak was short-lived, as sellers stepped in with force, causing the stock to retrace a substantial portion of its impressive gains.
The stock has since been trending lower, finding some tentative support around the $157 level. Volume is active, with over 7.6 million shares traded, indicating heavy participation from traders on both sides of the volatile action.
Should You Buy or Sell RDDT Stock Today?
The extreme intraday volatility creates a high-risk environment for traders.
-
For Potential Buyers: Buying now is highly speculative. The strong upward momentum from the morning has clearly faded, and the stock is trading well below its session high. This pattern, often called a “spike and fade,” is a cautionary signal. A prudent approach would be to wait for the price to stabilize and form a clear base before considering an entry.
-
For Existing Shareholders: The morning’s peak at $164.55 presented a prime opportunity for profit-taking. For those still holding, the situation is tense. The key is to watch if the current support level holds. A drop below the day’s low of $151.80 would erase all gains and turn the stock negative for the day.
Our Opinion on the Stock
Reddit stock demonstrated incredible but unsustainable momentum this morning. The sharp reversal from the day’s high indicates that the initial buying frenzy has exhausted itself, and sellers are now in control of the short-term trend. The stock is currently in a “no-man’s land,” caught between the early excitement and the subsequent profit-taking.
The key levels for the remainder of the session are the high of 151.80 as major support. Interestingly, the stock is trading well above its 1-year analyst target estimate of $147.97, which could suggest that some investors view the current price as overextended. High volatility is expected to continue.
