Reddit Shares Slide; $2.5 Million Long-Dated Call Bet Signals Ongoing Bulls

Reddit Inc. shares fell about 8% on Wednesday, extending their weekly decline to nearly 15%, as the recent pullback in technology names weighed on the social-media platform’s stock after a month-long surge. Despite the slide, options data showed a single investor paying roughly $2.5 million for 500 June 2027 call contracts with a $300 strike price, a bullish wager that Reddit’s market value will climb well above current levels over the next two years. The volatility comes after Reddit’s stock jumped 62% in the weeks following its 31 July earnings release, when the company reported second-quarter revenue more than 17% above analysts’ estimates and an 84% year-on-year surge in advertising sales to $465 million. The gains had made Reddit one of the best-performing large-cap tech names this quarter, prompting debate among analysts about whether momentum can be sustained as Google’s AI-driven search changes continue to amplify the site’s visibility.