Reddit Inc stock soars 15%: Is it time to buy into the hype? What is the reason behind the jump?

Shares of Reddit Inc. (traded as
RDDT
) witnessed a sharp upswing early Tuesday, surging over 15% shortly after the market opened. The dramatic rise has triggered intense interest among retail and institutional investors, prompting renewed discussions around the stock's long-term potential and its underlying fundamentals.
With Reddit's current stock price at $145.48, up $19.29 from its previous close, market observers are evaluating whether this momentum signals a durable breakout or a short-lived speculative bounce, as mentioned in a report by Bloomberg.
Early Trade Snapshot: Strong Opening Spurs Optimism
According to trading data as of 9:41 a.m. GMT-4, Reddit Inc. opened at $134.00, significantly higher than its prior close of $126.19, and climbed rapidly to hover near the intraday high of $145.69. The price movement reflects intense early-session buying, driven largely by positive sentiment surrounding Reddit's technological and advertising developments.
For traders relying on short-term price action, the steep climb has become a focal point for potential entry, although analysts caution against overlooking the risks posed by the stock's extreme volatility.
Valuation Metrics Show High Growth Expectations
The bullish movement has reignited debate about Reddit's sky-high P/E ratio of 233.35, which many analysts interpret as a reflection of elevated growth expectations. While high multiples are common for tech-driven platforms, such valuation levels also amplify downside risks in case of earnings misses or changing market sentiment.
Live Events
Reddit's 52-week trading range—from $49.13 to $230.41—further underlines its volatility. Currently trading in the upper half of this band, the
RDDT stock
remains well below its historic peak, signaling both room for further growth and the potential for pullbacks.
No Dividend, But Big Tech Ambitions
True to its growth-stage character, Reddit offers no dividend yield, choosing instead to reinvest in innovation and expansion. The company recently unveiled a set of AI-powered advertising tools—a move that many see as central to its future revenue model.
Announced at the Cannes Lions Festival, these tools include Reddit Insights, a real-time community listening platform for marketers, and Conversation Summary Add-ons, which allow brands to attach positive Reddit discussions under their ads. Powered by the company's proprietary Reddit Community Intelligence engine, these tools are designed to help brands better understand and engage with Reddit's highly interactive user base.
'Reddit is positioning itself as a serious player in the AI marketing space,' the company stated in its announcement. Early testing partners include Publicis, Lucid, and Jackbox Games.
Investor Take: A High-Risk, High-Reward Proposition
From a technical standpoint, Reddit's explosive price action may present opportunities for aggressive day traders looking to ride the wave. However, the elevated valuation, lack of dividends, and wide price swings make it a precarious choice for long-term investors, as per a report by CNBC.
Bullish arguments centre around Reddit's innovation in AI advertising, its massive online community, and recent revenue growth. Bearish views, however, highlight concerns over overvaluation, excessive volatility, and the risk of buying after a sharp rally.
Weigh the Momentum Against Fundamentals
Reddit's recent price jump—fuelled by optimism around its AI initiatives and digital advertising push—offers a compelling case for investors who can stomach risk and are chasing high returns. However, caution is warranted. With rddt stock trading at lofty valuations and exhibiting unpredictable movements, prudent investors may prefer to wait for consolidation or clearer earnings trajectories before entering.
FAQs
Why did Reddit Inc. (RDDT) stock jump over 15% on June 17, 2025?
Reddit shares surged more than 15% due to strong early-session buying interest, sparked by optimism around its AI-powered advertising tools and positive investor sentiment. The stock opened at $134.00 and quickly climbed to an intraday high of $145.69.
What is Reddit's current stock price and valuation?
As of the latest trading data, Reddit is priced at $145.48, reflecting a gain of $19.29 from the previous close. It carries a high P/E ratio of 233.35, suggesting elevated investor expectations for future growth.
Economic Times WhatsApp channel
)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hindustan Times

an hour ago

• Hindustan Times

Reddit may partner with Sam Altman's World ID for user verification via iris scan

Reddit is exploring a partnership with World ID, a biometric verification system developed by Tools for Humanity – a company co-founded by OpenAI CEO Sam Altman. If the deal goes through, Reddit users may soon be able to confirm their identity by scanning their irises using a device known as the Orb, reported Semafor. Iris scans to verify identity? This new-age method could soon come to Reddit (Representational image) The proposed system would verify that a user is a real, unique human without requiring personal information like names or email addresses - preserving anonymity while helping Reddit fight the growing wave of AI-generated bots. World ID is the central offering of Tools for Humanity and pitches itself as a way to provide "anonymous proof of human." Rather than traditional identification methods, World ID lets users verify their humanity through methods like the company's signature biometric scanner – the Orb. The Orb captures and processes iris scans, generating a World ID that can be used across various platforms. The company insists that neither iris images nor biometric data are stored or revealed, claiming privacy is a key feature of the system. Reddit's evolving verification needs Currently, Reddit verifies users via email, a method that's proven inadequate in tackling fake accounts and AI-driven spam. With governments across the world pushing for stricter online age verification laws, and platforms struggling to maintain authenticity without compromising anonymity, Reddit appears to be exploring next-gen solutions. In a recent Reddit post, co-founder and CEO Steve Huffman said, 'AI and age verification laws' would eventually require the platform to confirm whether users are 'human and of a certain age.' He added that Reddit would rely on third-party providers to avoid storing user information, emphasising the site's commitment to both anonymity and authenticity. Huffman also raised concerns about the rise of AI content on the platform, writing, 'unwelcome AI in communities is a serious concern. It is the worry I hear most often these days from users and mods alike. Reddit works because it's human. It's one of the few places online where real people share real opinions. That authenticity is what gives Reddit its value. If we lose trust in that, we lose what makes Reddit…Reddit. Our focus is, and always will be, on keeping Reddit a trusted place for human conversation.' However, the proposed verification method has already come under backlash, with Reddit users citing possible privacy concerns.

Hans India

an hour ago

• Hans India

KIIT ranks 5th in THE rankings

Hans News Service Bhubaneswar TimesHigher Education (THE) ranks universities across the globe based on their social impact through an innovative evaluation process. In this context, universities that actively contribute to societal development participate in the rankings. The KIIT-DU has been a consistent participant in this initiative, and its position has steadily improved each year due to its strong performance. This year too, KIIT has excelled in the Times Higher Education Impact Global Rankings 2025. The University has been recognised for its impact across three key criteria. The KIIT-DU has secured the top position in the country for its efforts in reducing inequality (SDG-10) and for its commitment to peace, justice and strong institutions (SDG-16) and affordable clean energy (SDG-7). Additionally, it has been ranked third in India for ensuring quality education (SDG-4). Overall, KIIT University stood fifth among all Indian universities in the Impact Rankings. Globally, it was placed in the 101 cohort in this year's rankings, which evaluate institutions based on their contributions towards achieving the United Nations' Sustainable Development Goals (SDGs). This year, over 2,400 universities from 130 countries participated in the ranking. The Founder of KIIT and KISS, Achyuta Samanta, lauded the impressive rankings. He said, 'Although KIIT has a very humbled beginning, it has niched its space globally in all accreditations and rankings. It has now achieved a status comparable to the finest universities globally. In India, it has made a significant impact as a leading university.' The KIIT's consistent success in these rankings demonstrates its commitment to excellence in continuous learning, sustainability, inclusion and global cooperation, Samanta said.

Time of India

12 hours ago

• Time of India

Techie gets shocked after being called for 3rd round interview after two months. 'Manager still to give feedback'

Job Hunters Share Their Stories A job seeker recently expressed his deep disappointment after being unexpectedly asked to attend another round of interviews, even though he had already completed two technical assessments back in April. Sharing his experience on the subreddit Indian Workplace, the candidate detailed how he had consistently followed up with the HR representative for feedback after the second round. Her repeated responses promised quick updates but never materialized into anything after weeks of silence, he received a message confirming a managerial round scheduled for the next day. However, that round never took place. The manager reportedly remained unavailable and continued to be 'busy' with no alternative arrangements made. The applicant tried once more on June 20 to get an update, only to be met with an even more frustrating reply. At this point, he admitted it would be easier to simply stay with his current employer rather than chase this opportunity story opened the floodgates for others to share their own frustrating experiences in India's corporate recruitment process. One Reddit user recalled going through something strikingly similar. After attending an interview in April and being told he was selected, he was contacted in May by the HR team. They said they would share the necessary documentation link but then went completely silent. Multiple attempts to contact the HR were either ignored or met with curt, dismissive he finally reached out to the hiring manager, he was assured that the offer would be processed by mid-June. But again, nothing happened. As his patience wore thin, he tried to confront the HR executive, who evaded his calls. After a particularly infuriating interaction, he decided to reject the offer entirely and declared he would accept another job. Even after threatening to escalate the matter to higher management, he was met with more excuses and no resolution.