Reddit's 3.71% Surge Pushes $1.82B Volume to 35th Rank AI Potential Fuels Analyst Optimism

Reddit (RDDT) surged 3.71% on August 14, 2025, with a trading volume of $1.82 billion, ranking 35th in market activity. The stock has gained 35% year-to-date, driven by a 55% rally since late July following Q2 earnings and revenue that exceeded analyst expectations. Analysts highlighted Reddit’s potential as a key player in the AI era due to its vast user data, despite recent gains, with some noting undervaluation.

Technical indicators suggest sustained momentum, with bullish candlesticks, golden crosses, and MACD expansion supporting the uptrend. However, overbought RSI and KDJ levels signal short-term caution. Institutional activity saw mixed signals: Brooklyn FI LLC reduced its stake by 23.9%, while major funds like Vanguard and JPMorgan increased holdings. Analysts raised price targets, with Morgan Stanley setting a $230.00 target, reflecting growing optimism about Reddit’s growth trajectory.

The backtest of a strategy buying top-volume stocks and holding for one day (2022–2025) showed a 6.98% CAGR but a 15.59% maximum drawdown, underscoring the need for risk management even in seemingly stable strategies.