Reddit Shares Climb Wednesday: What's Happening?

Reddit, Inc. (NYSE:RDDT) shares are trading about 4% higher on Wednesday, outperforming major indices, with the Nasdaq and S&P 500 each up roughly 1%. Reddit stock is showing upward movement. Why is RDDT stock advancing? San Fransisco Judge Tentatively Sides With Reddit On Friday, a San Francisco County court tentatively sided with Reddit in its lawsuit against artificial intelligence company Anthropic. Reddit filed the lawsuit last year, alleging that Anthropic unlawfully used posts from Reddit users to train its AI systems without entering into a licensing agreement or compensating the company. Anthropic had declined to pursue a licensing deal with Reddit, according to the report. Bullish Signals Emerge, But Trend Remains Weak Reddit is trading about 0.2% above its 20-day SMA, but it remains 25.9% below its 100-day SMA, showing a short-term stabilization attempt inside a still-damaged longer-term trend. Shares are up 12.97% over the past 12 months, and the stock is positioned closer to its 52-week low than its 52-week high. The RSI is at 38.77, which sits in neutral territory but leans weak, suggesting sellers have had the upper hand without pushing conditions into deeply oversold levels. Meanwhile, MACD is at -6.1820 versus a signal line at -8.0331, a bullish configuration (MACD above signal) that hints downside pressure is easing. RSI in the 30–50 range with bullish MACD indicates momentum leaning bullish. Key Resistance: $147.50 Key Support: $131.50 Benzinga Edge Rankings Below is the Benzinga Edge scorecard for Reddit, highlighting its strengths and weaknesses compared to the broader market: Momentum: Weak (Score: 11.26) — The stock's trend strength is lagging, which fits with price still sitting well below key longer-term moving averages. Value: Weak (Score: 15.59) — A low value score aligns with a premium-style setup, reinforced by the 52.0x P/E multiple. Growth: Strong (Score: 98.8) — The market is still pricing in aggressive growth expectations, which can amplify moves when sentiment turns risk-on. The Verdict: Reddit’s Benzinga Edge signal reveals a growth-heavy profile with weak momentum and weak value characteristics. For longer-term bulls, the setup improves if price can reclaim key resistance while momentum scores start to recover; otherwise, rallies may continue to face selling pressure into overhead levels. Reddit Shares Trade Higher RDDT Price Action: At the time of writing, Reddit shares are trading 4.82% higher at $142.68, according to data from Benzinga Pro. Image via Shutterstock