Reddit's $1.56B Volume Slumps to 58th in Liquidity Amid Tech Sector Jitters

On October 2, 2025, Reddit (RDDT) reported a trading volume of $1.56 billion, a 52.49% decline from the previous day, ranking it 58th among all stocks in terms of liquidity. The stock closed down 0.83%, extending its recent underperformance amid mixed market sentiment for tech names.

Analysts highlighted a broader trend of reduced speculative activity in the market, with Reddit’s volume contraction reflecting a shift toward more defensive trading patterns. The platform’s user-driven dynamics remain under scrutiny as investors weigh growth potential against macroeconomic headwinds.

Back-test parameters for a volume-based strategy require clarification: participants must confirm whether the universe includes only U.S.-listed equities, the metric for ranking (share volume vs. dollar volume), execution timing (T+1 open-to-open vs. close-to-close), and weighting methodology (equal-weight daily rebalancing). These details will determine the accuracy of signals generated from January 1, 2022, to the present.

Entry and exit rules must align with the defined conventions to ensure historical performance reflects real-world constraints. Final confirmation of these parameters is critical before initiating the back-test.