Summary

• Reddit, Inc. has shown strong technical performance with a 162.60% gain since the Trend Seeker buy signal on 9/18, and is above key moving averages.

• Barchart's indicators highlight a Weighted Alpha of 283.10+, a Relative Strength Index of 73.54%, and recent trading at $167.17, well above its 50-day average.

• Despite strong momentum, analysts' opinions are mixed with 6 strong buys, 4 buys, 6 holds, and 1 sell, and price targets ranging from $85 to $200.

• Investors should note the stock's volatility and speculative nature, and adhere to a disciplined diversification and stop-loss strategy consistent with personal risk tolerance.

The Chart of the Day belongs to the social media website Reddit (RDDT) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/18 the stock gained 162.60%.

RDDT Price vs Dail Moving Averages:

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 283.10+ Weighted Alpha
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 4 new highs and up 24.01% in the last month
• Relative Strength Index 73.54%
• Technical support level at $155.90
• Recently traded at $167.17 with 50 day moving average of $108.83

Fundamental Factors:

• Market Cap $28.58 billion
• Revenue expected to grow 31.96% next year
• Earnings are estimated to increase 28.13% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 6 strong buy, 4 buy, 6 hold and 1 sell opinion on the stock
• Analysts have price targets between $85 and $200
• Value Line rates the stock has 3-5 year price targets between $75 and $125 and comments:" It remains to be seen if the company will be able to generate earnings that are sufficient to justify its share price in the years ahead. Moreover, the company has been publicly-traded for only a relatively short time, which makes business prospects difficult to evaluate."
• CFRA's MarketScope rates the stock a sell
• MorningStar thinks the stock is 42% over valued
• 12,880 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.