Reddit Stock Falters Amid Tech Sell-Off, Defying Recent Bullish Momentum

Reddit Inc RDDT shares closed Wednesday’s session lower, swept up in a broader market retreat impacting technology and AI-related stocks. Here’s what investors need to know.RDDT stock is struggling to find support. Stay ahead of the curve here.What To Know: Wednesday’s decline comes as the tech-heavy Nasdaq-100 underperformed major indexes, with investor sentiment dampened by a recent report questioning AI profitability and anticipation of the Federal Reserve's latest meeting minutes.The dip marks a reversal from the social media company's recent powerful rally 49% rally over the past month. Reddit's stock hit a new 52-week high on Monday following a stellar second-quarter earnings report posted in late July that surpassed Wall Street expectations. The company announced impressive revenue of $499.6 million and a 21% surge in daily active unique users, prompting a wave of analyst upgrades and a bullish third-quarter outlook.Reddit’s strong fundamental performance in 2025 has also attracted institutional attention. According to its latest 13F filing, technology-focused hedge fund Tiger Global Management more than doubled its stake in Reddit during the second quarter, increasing its position from $341 million to $926 million.Despite this vote of confidence and strong recent performance, Reddit’s stock appeared to be caught in Wednesday’s market-wide risk-off sentiment, which pressured growth stocks across the board.Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Reddit exhibits extremely strong price Momentum, scoring an impressive 97.94. This high score reflects the stock’s powerful upward trend that led to its recent 52-week high. Conversely, the stock receives a very low Value score of 6.60, suggesting it may be considered overvalued based on current fundamental metrics.RDDT Price Action: According to data from Benzinga Pro, RDDT shares closed Wednesday’s session lower by 4.30% to $218.37. The stock has a 52-week high of $253.14 and a 52-week low of $54.27.Read Also: SoFi Stock Is Falling Wednesday: What’s Driving The Action?How To Buy RDDT StockBesides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.For Reddit, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Fed Just Poured Cold Water On Rate Cut Hopes–And Tariffs Are To Blame Image: Shutterstock