RDDT Stock Analysis: Buy, Sell, or Hold?

RDDT - Reddit, Inc.

SERVICES-COMPUTER PROCESSING & DATA PREPARATION
$180.27
-9.78 (-5.15%) β–Ό
WAIT
LOW Confidence
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Last Updated: January 30, 2026
Earnings: Feb 05, 2026 5d

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
⏸️ WAIT FOR STABILIZATION: RDDT is down 17.6% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$187.69
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$116.54
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: RDDT is currently trading at $180.27, which is considered oversold relative to its 30-day fair value range of $207.57 to $248.81. From a valuation perspective, the stock is trading at a discount (Forward PE: 49.3) compared to its historical average (58.4). Remarkably, the market is currently pricing in an annual earnings decline of 5.5% over the next few years. This pessimistic expectation contrasts with the company's recent 416.9% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, RDDT is in a strong uptrend. The price is currently testing key support at $185.50. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 5.1% recently.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $251.93 (+32.6%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $207.57 - $248.81
Company Quality Score 47/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 74.8%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BEARISH: Downward momentum (-5.1%)
  • BULLISH: Trading 32.6% below Wall St target ($251.93)
  • WARNING: Recommendation downgraded due to -17.6% 5-day decline - wait for stabilization

Fair Price Analysis

30-Day Fair Range $207.57 - $248.81
Current vs Fair Value OVERSOLD

Support & Resistance Levels

Support Level $185.50
Resistance Level $236.50
Current Trend Strong Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 49.30
Wall Street Target $251.93 (+32.6%)
Revenue Growth (YoY) 67.9%
Earnings Growth (YoY) 416.9%
Profit Margin 18.3%
Valuation Discount vs History -5.5% cheaper
PE vs Historical 49.3 vs 58.4 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -5.5% (market-implied from PE analysis)
1-Year Target $179.60 (-6%)
2-Year Target $169.72 (-11%)
3-Year Target $160.38 (-16%)
3-Yr Target (if PE normalizes) (PE: 49β†’58) $190.00 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 49.3, Growth: 65.8%) $641.42 (+238%)
Base: (SPY PE: 22.3, Growth: 65.8%) $290.15 (+53%)
Bear: (PE: 19.0, Growth: 65.8%) $246.63 (+30%)
πŸ“ˆ Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (62x PE), but valuation improves significantly next year (49x PE) as earnings recover.
Forward PE: 62.11 | Forward EPS (Implied): $3.06
Bull Case $229.49 (+21%)
Analyst growth 15.0%, PE expands to 65.2
Base Case $190.05 (0%)
Market implied 0.0%, PE stable at 62.1
Bear Case $145.39 (-24%)
Severe decline -15.0%, PE contracts to 55.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 49.3 to 58.4
Stabilization Target: $225.14 (+18.5%)
PE Expansion Potential: +18.5%
Last updated: January 30, 2026 5:42 PM ET
Data refreshes hourly during market hours. Next update: 6:42 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
20
Sells
Net
INSIDERS SELLING
Recent Transactions
Christopher Brian Slowe SELL 14000 shares 2025-10-22
Steve Ladd Huffman SELL 18000 shares 2025-10-15
Christopher Brian Slowe SELL 14000 shares 2025-10-08

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Advanced RDDT Option Strategies

Professional options setups generated by AI based on today's RDDT price and gamma walls.

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