What's Going On With Reddit Stock?

Reddit Inc RDDT shares are trading higher Tuesday after rising 30% on Monday. Here’s a look at what’s going on.

What To Know: Reddit made its highly anticipated debut in the public markets last week in what was the first major IPO of 2024. After pricing its IPO at $34 per share last Wednesday, the stock opened for trading at $47 on Thursday and began moving higher.

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 regained upward momentum on Monday and rallied 30%, closing the day at $59.80.

It’s worth noting that Reddit reserved 8% of its IPO shares for active users and moderators on the platform. Those investors were not bound by a lock-up period, which may be driving some of the high 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 stock was trending across various social platforms on Monday. It’s trending again on Tuesday with the stock up another 11.5% at the time of writing.

See Also: Reddit Options Buying Leaning Toward Bullish Sentiments On Wall Street

Should I Sell My RDDT Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return. Reddit shares are currently trading at all-time highs.

Investors may also want to consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Reddit stock currently has an RSI of 100.0, indicating overbought conditions.

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RDDT Price Action: Reddit shares were up 18.9% at $71 at the time of publication, according to Benzinga Pro.

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