Core Viewpoint - Reddit's stock is currently down 3%, but Needm has identified it as a top pick for 2026 and added it to its conviction buy list, citing significant growth potential due to its 100% human-created content and existing revenue streams from OpenAI and Google's Gemini, which could potentially double with additional partnerships [1]. Company Performance - Reddit has generated over $100 million annually from fees related to OpenAI and Google's Gemini, with expectations for this figure to double with contributions from Anthropic and Perplexity [1]. - The stock has appreciated approximately 40% year-to-date [1]. Market Position - Reddit is noted for its unique position in the communication sector, outperforming competitors like Alphabet (YouTube) and Meta (Instagram, Facebook) [3][4]. - The platform boasts impressive engagement metrics, including 1 billion posts and 16 billion comments, with daily averages of 1.2 million posts and 7.5 million comments [6]. Technical Analysis - Recent trading has shown volatility, with significant price movements ranging from approximately $177 to $283 [7]. - Key price levels include a support area around $178 and a resistance level near $240, with the stock currently trading around $225.85 [11]. - The stock remains above most major moving averages, although it has recently dipped below the short-term 5-day EMA [10]. Options Activity - The options market indicates a 12.4% expected move for January 16th and a 26.4% expected move for February 20th, suggesting anticipated volatility [13]. - The most active options for January 16th include call options at $195 and put options at $120, $140, and $170 [14].
Options Corner: RDDT named top pick at Needham