Reddit Stock Is Up on Q3 Earnings. Options Data Tells Us RDDT Could Be Headed Here Next.

Reddit (RDDT) inventory has prolonged features in current classes after the social media platform reported its fifth consecutive worthwhile quarter since going public.

Reddit earned $0.80 on a per-share foundation in its third monetary quarter on a better-than-expected $585 million in income, which interprets to 68% progress on a year-over-year foundation.

Regardless of post-earnings features, Reddit shares are down greater than 20% versus their year-to-date excessive.

Reddit’s place because the third most visited web site within the U.S. has strengthened its worth proposition to advertisers and knowledge licensing companions in 2025.

The corporate’s synthetic intelligence (AI) partnerships with Google (GOOGL) and OpenAI have improved its monetization potential and positioned it as a essential coaching floor for next-gen AI fashions as properly.

That helped Reddit file a 74% year-over-year improve in advert income and a whopping 41% progress in common income per person (ARPU) for its third quarter on Oct. 30.

RDDT inventory is being cheered additionally as a result of the NYSE-listed agency’s every day lively customers (DAUs) have skilled exceptional progress, reaching 116 million customers.

In fiscal Q3, worldwide person progress got here in at a very thrilling 31% following profitable implementation of translation capabilities throughout 30 languages.

Choices merchants are satisfied that RDDT shares will push additional up via the rest of this yr with the put/name ratio for each the close to and medium time period skewed majorly to the upside.

In response to Barchart, contracts expiring Jan. 16 point out potential for a continued inventory worth improve to about $253 whereas the anticipated transfer via the tip of subsequent week is 9.39% as properly, which can see Reddit inventory buying and selling at roughly $229 by Nov. 14.

Be aware that the social media firm is presently buying and selling slightly under its 50-day shifting common (MA) at about $224. A break above that stage might additionally increase bullish momentum into the tip of 2025.

Reddit shares are price shopping for right now additionally as a result of they’ve returned almost 18% in November over the previous 4 years and slightly over 16% in December.

Wall Road analysts additionally advocate sticking with RDDT inventory for the long run.