Reddit Inc (NYSE:RDDT) shares are trading marginally lower on Thursday. The company is set to release its fourth‑quarter earnings report after the market close today.

• Reddit stock is holding steady today. What’s ahead for RDDT stock?

Analysts expect Reddit to post earnings of 94 cents per share on revenue of $667.29 million.

Previous Quarter Showed Strong Momentum

Last quarter, Reddit delivered a strong performance, reporting $585 million in revenue, up 68% year‑over‑year, and earnings of 80 cents per share, well above expectations.

Net income surged to $163 million, a sharp improvement from $30 million a year earlier, while adjusted EBITDA reached $236 million on 40% margins.

Reddit's user and advertising metrics have also been trending higher. As of last quarter, daily active unique users climbed 19% year‑over‑year to 116 million, while ad revenue grew 74%.

For its fourth-quarter, Reddit issued guidance for revenue to be between $655 million and $665 million and projected adjusted EBITDA of $275 million to $285 million.

Technical Setup Remains Bearish

Reddit is currently positioned in a bearish setup, trading significantly below its key moving averages. This suggests that traders should be cautious, as the stock is struggling to gain upward momentum.

With an RSI of 21.83, Reddit’s stock is in oversold territory, indicating potential for a price rebound but also highlighting the risk of continued downward pressure. MACD is below its signal line, pointing to bearish momentum in the short term.

Key support is at $138.00, while resistance is around $164.50. If Reddit’s stock tests the support level, it could signal a further decline, whereas a break above resistance might indicate a potential trend change.

Over the past 12 months, Reddit’s stock has declined by 30.92%, reflecting a challenging year for the company. This longer-term performance reinforces the bearish outlook, as the stock remains well below its historical highs.

RDDT Price Action: Reddit shares were down 0.32% at $152.20 at the time of publication on Thursday, according to Benzinga Pro.

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