Reddit Inc. (NYSE:RDDT) stock fell on Monday due to high investor anxiety and technical selling ahead of its critical third-quarter earnings report scheduled for Thursday. The retreat comes despite broad market strength, as the Nasdaq gained 0.84% and the S&P 500 rose 0.68%.
Traders are de-risking positions ahead of the release, with Reddit session volume reaching 2.549 million compared to its 100-day average volume of 5.850 million, according to Benzinga Pro data.
Broader market trends showed nine of 11 sectors advancing, with an advance/decline ratio running at 4.5. Communication Services fell 0.76%, ranking as one of only two declining sectors, while Consumer Discretionary gained 1.68%, Industrials rose 1.13%, and Technology climbed 0.95%.
The Communication Services sector has trended lower recently, dropping 5.90% over the past 30 days and declining 4.60% over the past 90 days.
Analyst Earnings Estimates Ahead
Reddit is set to report earnings on Thursday. Market estimates project earnings per share of $1.35, up from 80 cents year-over-year. Revenue estimates stand at $877.97 million, up from $585.00 million year-over-year. RDDT currently trades at a price-to-earnings multiple of 33.5x.
Technical Analysis
Reddit is trading below every major trend gauge, sitting 9.7% under its 20-day SMA, 10.6% under its 50-day SMA, and 15%+ below both the 100-day and 200-day averages—classic "sell-the-bounce" positioning. The bearish backdrop is reinforced by the 20-day SMA sitting below the 50-day SMA, and the death cross that formed in March (50-day below the 200-day) still frames the bigger-picture trend as down.
From a levels perspective, traders will likely watch whether the stock can hold near-term demand and avoid another leg lower toward the 52-week low area ($119.27). On the upside, any rebound attempt has to contend with a thick band of overhead supply between the low $150s (20-day/50-day area) and the low $160s (longer-term averages).
- Key Resistance: $162.50 — a nearby ceiling that lines up with the broader moving-average "overhead supply" zone where rebounds can stall
- Key Support: $135 — a nearby floor close to current price where buyers may try to defend the recent range
RDDT Stock Price Activity: Reddit shares are trading lower by 5.53% at $136.28 at the time of publication on Monday, according to Benzinga Pro data.
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