Reddit Stock Alpha and Beta Analysis
| RDDT Stock | 139.65 8.58 6.55% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Reddit. It also helps investors analyze the systematic and unsystematic risks associated with investing in Reddit over a specified time horizon. Remember, high Reddit's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Reddit's market risk premium analysis include:
Beta 0.52 | Alpha (0.53) | Risk 4.09 | Sharpe Ratio (0.1) | Expected Return (0.39) |
Enterprise Value |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Check out Reddit Analysis, Reddit Valuation, Reddit Correlation, Reddit Hype Analysis, Reddit Volatility, Reddit Price History and analyze Reddit Performance. Reddit Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Reddit market risk premium is the additional return an investor will receive from holding Reddit long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Reddit. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Reddit's performance over market.| α | -0.53 | β | 0.52 |
Reddit expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Reddit's Buy-and-hold return. Our buy-and-hold chart shows how Reddit performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Reddit Market Price Analysis
Market price analysis indicators help investors to evaluate how Reddit stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Reddit shares will generate the highest return on investment. By understating and applying Reddit stock market price indicators, traders can identify Reddit position entry and exit signals to maximize returns.
Reddit Return and Market Media
The median price of Reddit for the period between Mon, Nov 17, 2025 and Sun, Feb 15, 2026 is 220.84 with a coefficient of variation of 15.6. The daily time series for the period is distributed with a sample standard deviation of 32.7, arithmetic mean of 209.65, and mean deviation of 26.56. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Disposition of 18750 shares by Benjamin Lee of Reddit at 240.0 subject to Rule 16b-3 | 12/18/2025 |
2 | Reddit Valuation Check As New Emplifi And Invoca Partnerships Support Monetization Story | 01/22/2026 |
3 | Federated Hermes Inc. Invests 165.25 Million in Reddit Inc. RDDT | 01/28/2026 |
4 | Reddit Q4 2025 Earnings Call Transcript | 02/05/2026 |
5 | Reddit Buyback Signals Confidence As Earnings And Volatility Shape Investor Debate | 02/06/2026 |
6 | Baird Adjusts Reddit PT to 200 Following Strong Results, Positive Outlook | 02/09/2026 |
7 | Alps Advisors Inc. Has 2.86 Million Position in Reddit Inc. RDDT | 02/10/2026 |
8 | Can Reddit Sustain Its Momentum Needham Thinks So | 02/11/2026 |
9 | Down More Than 35 percent in 2026, Can Reddit Stock Rebound as Revenue Soars | 02/12/2026 |
10 | Market Movers Heres Why Applied Materials is Up 13 | 02/13/2026 |
About Reddit Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Reddit or other stocks. Alpha measures the amount that position in Reddit has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2025 | 2026 (projected) | Graham Number | 28.53 | 25.36 | Receivables Turnover | 3.73 | 2.57 |
Reddit Investors Sentiment
The influence of Reddit's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Reddit. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Reddit's public news can be used to forecast risks associated with an investment in Reddit. The trend in average sentiment can be used to explain how an investor holding Reddit can time the market purely based on public headlines and social activities around Reddit. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Reddit's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Reddit's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Reddit's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Reddit.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Reddit in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Reddit's short interest history, or implied volatility extrapolated from Reddit options trading.
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Additional Tools for Reddit Stock Analysis
When running Reddit's price analysis, check to measure Reddit's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reddit is operating at the current time. Most of Reddit's value examination focuses on studying past and present price action to predict the probability of Reddit's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reddit's price. Additionally, you may evaluate how the addition of Reddit to your portfolios can decrease your overall portfolio volatility.