Reddit Stock: 6 Straight Red Days, Down 14%
Reddit (RDDT) stock is on a 6-day losing streak, down 13.5% since the run began. That erased about $4.0 billion from the company’s market value, which now stands at about $25.9 billion. The stock closed at $134.70 on Wednesday, October 28, 48.0% below its 52-week high of $258.93 and 10.6% above its low of $121.84.
RDDT Versus The S&P 500
Returns for RDDT and the S&P 500 over the streak and the periods around it, all ending Wednesday, October 28 and including dividends:
| Return Period | RDDT | S&P 500 |
|---|---|---|
| 1 Day | -1.3% | 0.3% |
| 6 Days (Current Streak) | -13.5% | 0.4% |
| 1 Month (21 Trading Days) | -7.3% | 1.0% |
| 3 Months (63 Trading Days) | -24.3% | 4.4% |
| Year To Date | -41.4% | 14.2% |
| 1 Year (252 Trading Days) | -38.6% | 14.0% |
A Stock-Specific Slide, Or A Market Move?
The market explains little of this: the S&P 500 gained 0.4% over the same 6 sessions, including dividends, against Reddit’s -13.5%. 2 other S&P 500 stocks are currently on losing streaks of 6 days or longer. Over the past three months the stock is down 24.3%, a window that includes the streak; over the other 57 sessions of that window it was down 12.6%.
What The Numbers Say About The Slide
On the fundamentals, revenue grew 66.6% over the last twelve months, against a median of 6.8% for S&P 500 Communication Services stocks; its operating margin is 28.2%, versus a median of 20.1%; and the stock trades at 29.7 times trailing earnings against a median of 18.6. The read is mixed: revenue growth above the median and margins above the median on one side, a multiple well above the median on the other.
A slide like this raises an obvious follow-up: which marked-down stocks are actually worth buying? Our Buy the Dip screen runs that test every day, flagging beaten-down names whose fundamentals still hold up.
For anyone who would rather back the theme than one company, a communication services ETF like XLC holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
Weakness In One Name Should Be Noise, Not News
For a diversified holder, a streak like this is a data point. For a concentrated one, it is a hole in the plan. The difference is never the stock; it is the portfolio built around it.
Building that portfolio is what the Trefis High Quality (HQ) Portfolio does: roughly 30 businesses with the cash generation and balance-sheet strength to absorb a bad month, selected and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Make the next streak, in either direction, someone else’s drama.