RDDT Nears Key $168 Inflection Point Amid Buyback and Earnings Boost

Reddit (NYSE: RDDT) stock has surged over 11% in pre-market trading, a sharp reversal from its recent bearish trend. The move comes after the company announced robust fourth-quarter financial results, including 70% year-over-year revenue growth to $726 million and a 272% increase in earnings per share. Additionally, Reddit announced a $1 billion stock buyback, signaling strong balance sheet health and capital return commitment. These developments, combined with a 7.4% gap up from its previous close of $151.05, have triggered a strong overnight reprice. That said, the volume remains relatively weak compared to 60-day averages, suggesting cautious participation.

Why is RDDT stock rising sharply in pre-market?

RDDT is currently trading in the lower range of its 60-day price band, far below its 20-day and 50-day moving averages. The stock’s 14-period ATR of $14.07 indicates elevated volatility, but the immediate technical levels are tightly clustered around $168.00. That level serves as both a near-term resistance and support zone, based on historical price action. Crucially, the nearest support and resistance are essentially the same price level, which creates a high-stakes inflection point for the stock. If Reddit holds above $168, it could test the next wave of buyers, potentially reaching $179.04 or $188.89, depending on follow-through volume. On the flip side, a breakdown below $168 would raise concerns about a reversal or failure scenario, with a potential target as low as $153.72.

RDDT support and resistance levels remain closely watched as the stock navigates this pivotal moment. The current price of $167.79 is perilously close to the $168 level, and the next few sessions will be critical in determining whether the bullish momentum can sustain. Given the weak volume confirmation, the path forward remains uncertain. Still, the price action has created a high-interest setup, with both institutional and retail traders likely observing the key levels for a breakout or breakdown. In the short term, investors should focus on how the stock handles the $168 zone and whether volume increases to confirm any directional move.