Reddit Gains 4.02% Despite Volume Drop to 84th in Market Activity as AI Ties and User Growth Fuel Optimism

On September 4, 2025, Reddit (RDDT) closed with a 4.02% gain despite a 48.85% drop in trading volume to $0.98 billion, ranking 84th in market activity. The stock's performance came amid renewed focus on its user engagement metrics and partnership developments.

Recent reports highlighted Reddit's strategic collaboration with AI developers to enhance its platform's content moderation tools, a move analysts say could improve long-term user retention. The company also announced plans to expand its premium subscription tiers, offering exclusive community features to incentivize monetization without compromising user experience.

Market participants noted that Reddit's first-quarter active user growth, reported at 65 million, exceeded expectations and signaled resilience against competition from short-form video platforms. However, concerns persist over advertising revenue diversification, with over 70% of current revenue still tied to legacy ad formats.

Backtesting results indicate that Reddit's 52-week high of $12.35 remains a critical resistance level. Historical data shows the stock has failed to sustain gains above $11.80 in three of the last five attempts, with average daily volume declining by 32% during those periods compared to its 90-day average.