The popular community website Reddit (RDDT) has really done well since its IPO. The stock went into today’s earnings report up at $216.47. Afte the bell, they reported EPS of 36 cents on revenues of $427.7 million. That beat on both top and bottom line. The company guided Q1 adjusted EBITDA in the range of $80 to $90 million on revenues of $360 to $370 million. Margins improved as revenue growth far outpaced the increases in costs.
That good news didn’t stop the stock from dropping precipitously on earnings. The stock cratered, dipping down under $174 before the brutality stopped ahead of the conference call. On the call, the company was excited as ever with the future. The stock trickled up to $187.80 into 8pm. The 50-day is at $178.56 with today’s VWAP in after-hours up near $202.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding Reddit’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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Reddit Inc. (RDDT) : Free Stock Analysis Report
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