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Reddit Inc. RDDT shares are in the spotlight, with earnings on deck, fresh analyst activity, a mixed technical setup and Edge Rankings all drawing attention.
Earnings Preview & History
Reddit is scheduled to report second-quarter earnings on July 30. The company is expected to report earnings per share of 97 cents along with revenue of $732.82 million. For the prior quarter, Reddit reported earnings per share of $1.01, beating the consensus estimate of 58 cents. The company also posted revenue of $663.41 million, exceeding the consensus estimate of $609.04 million.
Reddit has beaten EPS estimates in eight consecutive quarters. Over the last four quarters, the company has averaged an EPS surprise of 0.74% and a revenue surprise of 0.10%.
A Mixed Technical Picture Ahead of Earnings
Reddit is trading 6.1% below its 20-day SMA ($185.96), which tells you the stock has been losing short-term trend support and is now trying to stabilize after a pullback. At the same time, it’s still 1% above its 50-day SMA ($172.99) and 9.3% above its 100-day SMA ($159.74), so the intermediate trend hasn’t fully rolled over yet.
RSI is the cleaner momentum read right now: at 51.01, it’s neutral, suggesting the stock isn’t stretched enough to be "washed out," but it’s also not showing the kind of strong upside pressure that typically powers breakouts. In plain English, RSI helps gauge whether buying or selling has gotten overdone, and this reading points to a market that’s more balanced than emotional.
The moving-average structure is mixed: the 20-day SMA is above the 50-day SMA (a bullish short-term alignment), but the death cross from March (50-day SMA below the 200-day SMA) is still a longer-term caution flag. That combination often produces choppy trading where rallies can fade quickly unless price can reclaim the longer moving averages.
- Key Resistance: $187.50 — close to the 20-day SMA/EMA area where recent bounces can run into supply
- Key Support: $158.50 — a nearby downside level to watch if the stock loses the 100-day SMA and sellers press the May swing-low zone
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $230.41. Recent analyst moves include:
- Wedbush: Outperform (Target $250.00) (July 16)
- Wells Fargo: Equal-Weight (Raises Target to $187.00) (July 7)
- Needham: Buy (Maintains Target $300.00) (June 24)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Reddit, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Neutral (Score: 56.22) — The stock’s trend is still constructive, but the current pullback suggests buyers are being more selective at these levels.
- Value: Weak (Score: 13/100) — The market is pricing in a lot of future execution, leaving less room for error if growth cools.
- Growth: Strong (Score: 98.83) — Expectations remain geared toward fast expansion, which is why earnings and guidance can move the stock sharply.
The Verdict: Reddit’s Benzinga Edge signal reveals a growth-heavy profile, with strong growth characteristics but a weak value setup. With momentum sitting in the middle, the next directional push likely depends on whether the stock can reclaim key moving averages ahead of earnings.
Reddit Shares Plummet
RDDT Price Action: At the time of publication, Reddit shares are trading 5.69% lower at $175.26, according to data from Benzinga Pro.
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This article Reddit Stock Hasn't Missed an EPS Estimate in Two Years — Will Q2 Break the Streak? originally appeared on Benzinga.com.
