What's Going On With Reddit Stock?

Zinger Key Points
  • Reddit made its highly anticipated debut in the public markets last week in what was the first major IPO of 2024.
  • 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.

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.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

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

Photo: Shutterstock.

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