Reddit Stock Is Rising Monday: What's Going On?

Reddit Inc RDDT shares are trading higher Monday amid post-IPO volatility. Here’s what you need to know.

What To Know: Reddit made its long-awaited entry into the public markets last week in what was the first major IPO of 2024. After pricing its IPO at $34 per share on Wednesday, the stock opened for trading at $47 and quickly started moving higher. 

Reddit reserved 8% of its IPO shares for its most loyal active users and moderators. Those investors were not bound by a lock-up period, which may be fueling some of the volatility in the name. Reddit also said in its S-1 filing that "meme stock" schemes on r/WallStreetBets could pose a risk to investors.

Reddit closed its first day of trading at $50.31, up nearly 48% from its IPO price of $34. After trading lower on Friday, the stock appears to have found its footing and is now moving higher on upward momentum.

Reddit stock is trending across various social platforms on Monday, including Reddit, where the stock was among the most mentioned tickers on r/WallStreetBets over the last 24 hours. Monday’s trading volume was hovering around 13.1 million at publication time, per Benzinga Pro.

Check This Out: ‘Level The Playing Field’: Reddit CEO Reveals On IPO Day He’s A Member Of WallStreetBets

How To Buy RDDT Stock

By now you're likely curious about how to participate in the market for Reddit – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of Reddit, which is trading at $53.67 as of publishing time, $100 would buy you 1.86 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

RDDT Price Action: Reddit shares were up 17.5% at $54.05 at the time of writing, according to Benzinga Pro.

Photo: Shutterstock.