Reddit Hits $1.69 Billion Trading Volume Ranks 33rd by Liquidity as Stock Falls 1.92% on Policy Shifts and Market Volatility

On August 18, 2025, Reddit (RDDT) recorded a trading volume of $1.69 billion, ranking 33rd among stocks by daily liquidity. The platform's shares closed down 1.92% amid mixed market sentiment

Recent developments highlighted the platform's strategic shifts in content moderation policies, with management announcing stricter enforcement of community guidelines across high-traffic subreddits. Analysts noted this could impact user engagement metrics, which have historically correlated with revenue growth. The company also confirmed ongoing infrastructure upgrades to handle surging traffic from its live event features

Short-term momentum indicators showed Reddit's stock reacting to renewed interest in its ad monetization tools. However, technical analysts observed a breakdown in key support levels, suggesting potential for further consolidation in the near term. The stock's recent volatility contrasts with broader tech sector trends, where AI-driven companies are outperforming

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks