Table Of Content
Can You Buy Reddit Stock?
Yes, you can invest in Reddit by purchasing shares of its publicly traded parent company, Reddit, Inc., which is listed under the ticker symbol RDDT on the New York Stock Exchange (NYSE).
Reddit made its public debut in March 2024 through an initial public offering (IPO).
Since then, RDDT has attracted significant investor attention thanks to its massive user base, advertising potential, and role in driving online communities.
How to Buy Reddit Stock?
Purchasing shares of Reddit (RDDT) is a straightforward process available through most brokerage platforms. Here’s a step-by-step guide to get started:
-
1. Select a Brokerage Account
Start by choosing a reputable online broker for beginners or an investing app that offers access to NYSE-listed stocks. Platforms such as Robinhood, Fidelity, and Merrill Edge allow users to trade Reddit stock (RDDT).
All of them enable commission-free trading of RDDT shares and offer beginner-friendly tools for new investors.
Broker | Annual Fees | Best For |
|---|---|---|
Robinhood | $0 – $6.99
$0 for basic account, $6.99 for Robinhood Gold | Beginner Stock & Crypto Traders |
SoFi Invest | $0 | Automated Investing & Beginners |
eToro | $0 | Copy & Social Trading |
Wealthfront | 0.25% | Hands-Off Investors |
Webull | $0 | Active Day Traders |
Cash App Invest | $0 | Easy Stocks & Bitcoin Purchases |
Ally Invest | $0 | Mobile-Friendly Investing |
-
2. Open and Fund Your Account
Once you've selected a brokerage, you’ll need to create an account. Provide your personal details, verify your identity, and link a bank account.
Then, deposit funds into your brokerage account to cover your planned investment.
For example, if RDDT is trading at $45 per share and you want to buy 20 shares, make sure your account has at least $900, not including potential fees or order slippage.
-
3. Research RDDT Stock
Before buying, it's wise to research Reddit's recent financial performance, analyst ratings, monetization strategies (like ads and premium subscriptions), and user engagement metrics.
Reddit’s earnings calls and SEC filings often provide insight into its growth trajectory.
You can also research investors' analyses and updates on websites such as SeekingAlpha, Yahoo Finance, or investing.com.
-
4. Place a Buy Order
Log into your brokerage and enter the ticker symbol RDDT in the trade section. Decide how many shares to buy and select the order type:
Market Order: Executes immediately at the current market price.
Limit Order: Executes only if the stock reaches a specific price you set.
For example, if RDDT is trading at $45.00 but you’re targeting a dip, you might set a limit order at $43.50.
-
5. Monitor Your Investment
After buying RDDT, keep track of how the stock performs over time. Most brokerages offer tools to set price alerts, track news, and review analyst reports.
For example, if Reddit announces a partnership or reports strong ad revenue, you might see a price bump. Setting up alerts can help you stay responsive to key updates.
How to Invest In Reddit Stock Indirectly
If you want exposure to Reddit without buying RDDT directly, consider these alternative investment strategies through broader holdings:
-
Invest in ETFs That Hold Reddit Stock
One indirect way to gain exposure to Reddit is through exchange-traded funds (ETFs) that include RDDT in their holdings.
For example, the Renaissance IPO ETF (IPO) and Global X Social Media ETF (SOCL) both added Reddit shortly after its IPO.
These ETFs provide diversification across tech and social media companies, reducing the risk of relying solely on Reddit’s performance while still benefiting from its growth potential.
-
Target Similar Social Media Stocks
If you believe in the future of social platforms but want to hedge against Reddit’s volatility, consider more established players:
Meta Platforms (META) – Owns Facebook, Instagram, Threads, and WhatsApp, with proven monetization and AI investments.
Pinterest (PINS) – A visual discovery engine with growing ad revenues and international expansion.
Snap Inc. (SNAP) – The parent of Snapchat, still popular among Gen Z with AR and digital content innovations.
These companies offer social media exposure with deeper track records and more predictable earnings.
Should You Invest in Reddit Stock?
Investing in Reddit (RDDT) involves weighing its unique strengths against the risks of a relatively new public company in a competitive space.
- Strong Community Engagement
Reddit boasts hundreds of thousands of active communities (“subreddits”) covering nearly every topic imaginable, creating a highly engaged user base that spends significant time on the platform.
- Unique Ad Targeting Capabilities
Reddit’s structure allows advertisers to reach very specific, interest-based communities, offering an advantage in niche targeting compared to more generalized platforms.
- Diversified Revenue Streams
In addition to advertising, Reddit earns from Reddit Premium subscriptions and virtual awards, helping broaden its monetization strategy.
- Cultural Influence & Brand Recognition
From r/wallstreetbets to AMAs with celebrities and politicians, Reddit has played a central role in shaping internet culture and media narratives.
- Not Yet Profitable
While Reddit has posted strong revenue growth, it remains unprofitable, reflecting significant spending on platform development and growth initiatives.
- High Competition
Reddit competes with giants like Meta (Facebook, Instagram), X (formerly Twitter), TikTok, and YouTube — all of which have far larger ad infrastructures.
- Content Moderation Challenges
Reddit relies heavily on volunteer moderators and has faced criticism over handling of misinformation, hate speech, and controversial content.
- Tough Audience
Reddit users tend to be those who explore and research – which is less good when it comes to advertising as a revenue model.
FAQ
Reddit trades under the ticker symbol RDDT on the New York Stock Exchange (NYSE). You can search for RDDT on your brokerage platform to start trading.
Yes, international investors can buy Reddit shares if their brokerage provides access to U.S. exchanges. Availability may depend on local regulations and platform restrictions.
If you have a self-directed IRA or 401(k) that allows individual stock purchases, you can include Reddit stock. Traditional retirement plans with mutual funds may not include it yet.
No, Reddit does not currently pay dividends. As a newly public tech company, it reinvests earnings into platform development and growth.
You can review Reddit's financial reports on the SEC’s EDGAR database or through financial news sites like Yahoo Finance or MarketWatch. Quarterly earnings releases offer insight into revenue, user growth, and profitability.
Reddit was not profitable at the time of its IPO. Like many social media startups, it focused on user growth and advertising expansion over short-term profits.
Yes, you can short Reddit stock if your brokerage supports margin accounts and short-selling. Be aware that shorting carries high risk, especially with volatile IPOs.
Reddit offered a portion of its total shares to the public during the IPO. The exact number can be found in its IPO prospectus filed with the SEC.
Yes, Reddit insiders are typically subject to a lock-up period post-IPO, preventing them from selling shares for a few months. This restriction helps stabilize early trading activity.
Reddit generates revenue from digital advertising, premium subscriptions, and virtual awards. Its ad business is growing, especially through targeted campaigns in niche communities.
