Reddit GAAP EPS of $1.25 beats by $0.29, revenue of $805M beats by $73.93M
Reddit (RDDT) reported strong results, exceeding market expectations for both earnings per share (GAAP EPS) and revenue.
Despite recording an earnings surprise, the stock price has sharply declined due to concerns over 'choppy' search referrals. At this point, one might consider entering the position based on the strength of the earnings themselves and the upward momentum.
Following the earnings announcement, volatility has increased, but the upward momentum is maintained. If the resistance level of 185 is breached, it is expected to reach the profit-taking target of $200.0. Conversely, if the flow around the support level of 170 breaks down and downward pressure increases, I will manage the risk at the stop-loss price of $165.0.
The cases of VEEE (return 451.7%), LRCX (return 346.8%), and AMD (return 333.8%) do not have direct similarities, but are provided as references for top performance across the region.
Despite recording an earnings surprise, the stock price showed a downward trend, overshadowed by concerns over 'choppy' search inflows. On the actual date of 2026-07-31, the opening price was 147.7, the low was 142.34, and the closing price was 143.14, indicating a sharp decline. Ultimately, contrary to expectations, it reached a -18.6% actual result, resulting in a FAILED designation.
Even with the announcement of excellent performance indicators, we have learned that risk management should be applied more conservatively during periods of short-term market concerns or increased volatility. In the next trading session, we will more rigorously reflect not only the strong performance but also the day's sharp price fluctuations and supply-demand trends to reassess our stop-loss response criteria.