Background Information
Reddit is an internet giant that self-identifies as "the front page of the Internet."
It sits right between a massive social network, a discussion forum, and a news aggregator.

Why does the trend remain bullish?
- AI Monetization: Reddit sells access to its massive archive of human conversations to tech giants like Google and OpenAI for training LLM models. It provides a recurring, ultra-high-margin cash flow.
- Revenue Growth & Profitability: On-platform advertising is growing rapidly thanks to improved targeting, driving revenue and earnings well past market estimates.
- International Expansion: The use of real-time machine translation is driving rapid growth in active users outside English-speaking countries.
- Value of Human Content: In an era where the web is flooded with AI-generated text, real human experience and opinions on Reddit are becoming an increasingly rare and valuable asset.


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Analysis
The price drops with exaggerated momentum following the earnings release, bringing it to test the blue support line for the fifth time, a level that has held the price since its IPO.
There are two large gaps on the chart.

The POC (Point of Control) is at $145 and represents the first resistance level to overcome to initiate a rebound.

I have opened a half position while waiting to see how the price action unfolds.

Further updates to follow.