On August 3, Reddit rose 5.31% in regular trading, trading at $147.1/share, with turnover of $472 million.

The rebound follows a sharp 22% selloff on July 31, when the stock plunged despite reporting Q2 results that significantly exceeded expectations. Q2 revenue came in at $804.9 million, up 61% year-over-year and well above the consensus estimate of $730 million. Adjusted EPS of $1.25 beat the $0.95 estimate by 31.58%. Q3 revenue guidance of $860-$870 million also topped the Street consensus of $828 million.

The prior selloff was triggered by slowing U.S. daily active user growth, which decelerated from 7% to 6% quarter-over-quarter, alongside concerns over search traffic volatility from AI-driven changes. Multiple analysts lowered price targets, with Wedbush cutting to $221 from $250 while maintaining an Outperform rating, and KeyBanc initiating coverage with an Overweight rating and $225 target. The combination of deeply discounted valuation and fundamentally strong earnings created recovery demand, driving the intraday rebound.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)