Reddit (RDDT) stock is up 41% over the past three months thanks to stronger-than-expected Q1 earnings, surging ad revenue, and robust user growth. Its recent partnerships with AI firms and data licensing deals have diversified revenue sources beyond traditional advertising. Despite the massive gains, technical indicators suggest that RDDT stock is a Strong Buy, implying further upside from current levels.
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Reddit is a social media platform where users share, discuss, and vote on content across a wide range of communities called subreddits.
Analyzing RDDT Stock’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, Reddit is currently on an upward trend. The Moving Average Convergence Divergence (MACD) indicator, which helps understand momentum and potential price changes, signals a Buy.
Further, the stock’s 50-day Exponential Moving Average (EMA) is 137.27, while its price is $160.59, implying a bullish signal. Also, its shorter-duration EMA (20 days) signals an uptrend.
Another technical indicator, the Rate of Change (ROC), is a momentum-based technical indicator used to measure the percentage change in a stock’s price between the current price and the price from a specific number of periods earlier. Typically, a ROC above zero confirms an uptrend. Reddit stock currently has an ROC of 4.43, which signals a Buy.
Moreover, Williams %R helps traders see if a stock is overbought or oversold. For RDDT, Williams %R currently shows a Buy signal, suggesting the stock is not overbought and has room to run.
Is RDDT Stock a Good Buy?
Turning to Wall Street, RDDT stock has a Moderate Buy consensus rating based on 14 Buys, eight Holds, and one Sell assigned in the last three months. At $156.76, the average Reddit stock price target implies a 2.38% downside potential.
