{"id":48354,"date":"2026-03-29T11:35:03","date_gmt":"2026-03-29T11:35:03","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/03\/29\/reddit-stock-price-has-imploded-buy-the-dip-or-sell-the-rip\/"},"modified":"2026-03-29T11:35:03","modified_gmt":"2026-03-29T11:35:03","slug":"reddit-stock-price-has-imploded-buy-the-dip-or-sell-the-rip","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/03\/29\/reddit-stock-price-has-imploded-buy-the-dip-or-sell-the-rip\/","title":{"rendered":"Reddit stock price has imploded: buy the dip or sell the rip?"},"content":{"rendered":"
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Reddit stock price has slumped in the past few months, moving from a record high of $281 in September last year to $127 today. <\/p>\n

Its market capitalization has dropped from over $50 billion to the current $21 billion. So, will the strong revenue growth help it bounce back?<\/p>\n

Reddit stock crashes amid numerous headwinds <\/h2>\n

The RDDT stock price has staged a strong retreat in the past few months as investors have expressed concerns about its business. <\/p>\n

The most recent headwind was a ruling that found social media companies like Meta Platforms<\/a> and Google liable for negligence in addiction, especially among young people.<\/p>\n

This ruling means that social media companies will likely come under more scrutiny in the coming years. <\/p>\n

Some investors are concerned that these companies will be viewed in the same lens as tobacco firms. <\/p>\n

This explains why Meta Platforms and Snap stock prices<\/a> have dropped.<\/p>\n

Reddit stock has also plunged amid concerns that the business will be disrupted by artificial intelligence technology over time. <\/p>\n

However, some analysts believe that the company will benefit from the AI industry because of the vast amount of data in its platform.<\/p>\n

At the same time, there were concerns that the company was highly overvalued. <\/p>\n

Despite the ongoing crashed, the stock has a forward price-to-earnings ratio of 30, which is much higher than the broader market.<\/p>\n

Reddit has key catalysts<\/h2>\n

Fundamentally, Reddit has one of the best metrics that may help to offset the retreat. The most notable one is that the company\u2019s business continues to grow <\/p>\n

Reddit\u2019s daily active unique users rose by 19% in the fourth quarter to over 121.4 million, while the weekly active users rose to 471 million.<\/p>\n

The company\u2019s revenue jumped by 70% to over $726 million, while the net income soared by 35% to $252 million. <\/p>\n

These numbers make it one of the fastest-growing social media companies in the industry.<\/p>\n

Most notably, the company announced a plan to reduce its outstanding shares by buying $1 billion of its own shares. <\/p>\n

Share repurchases help to reduce the outstanding shares, which, in theory, leads to a higher earnings per share (EPS).<\/p>\n

Wall Street analysts believe that the company has more room to grow. The average estimate is that its quarterly revenue will be $606 million, up by 54% YoY. <\/p>\n

This revenue growth will continue in the next few quarters, with the average estimate<\/a> for the year rising to $3.14 billion, up by 42% YoY. Its revenue will be $4.09 billion, up by 30% YoY.<\/p>\n

Reddit has also become highly profitable, with the earnings-per-share (EPS l) rising to $4.12, up from $2.52 last year. Its EPS will then grow to $5.75.<\/p>\n

Therefore, with Reddit, we have a quality social media company whose revenue and profits are growing. As such, while its technicals are weak, the stock will likely rebound over time.<\/p>\n

Reddit share price technical analysis <\/h2>\n
<\/figure>\n

RDDT stock chart | Source: TradingView <\/p>\n

The daily timeframe chart shows that the RDDT stock price has crashed in the past few months, moving from a high of $282 in September last year to the current $127.<\/p>\n

It has dropped below the 61.8% Fibonacci Retracement level at $158. <\/p>\n

The stock moved below the important support level at $127.9, its lowest level in February.<\/p>\n

The stock has dropped below all moving averages, a sign that bears remain in control. It has also dropped below the Ichimoku cloud and Supertrend indicators.<\/p>\n

Therefore, the stock will likely continue falling, with the next key target to watch being the psychological level at $100. <\/p>\n

In the long-term, however, the stock will likely rebound as investors buy the dip.<\/p>\n

The post Reddit stock price has imploded: buy the dip or sell the rip?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Reddit stock price has slumped in the past few months, moving from a record high of $281 in September last year to $127 today. Its market capitalization has dropped from over $50 billion to the current $21 billion. So, will the strong revenue growth help it bounce back? Reddit stock crashes amid numerous headwinds  The <\/p>\n","protected":false},"author":1,"featured_media":48355,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-48354","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=48354"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/48355"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=48354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=48354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=48354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}