This article assesses the risk of holding Reddit (RDDT), listed for about 2.5 years, alongside index funds. Over the past year, Reddit moved more than the S&P 500 in both directions: on the index's average up day of 0.65%, a $10,000 investment in Reddit grew to about $10,130, while on its average down day of 0.6% it fell to about $9,850. Reddit's volatility was 70% a year, versus 13.0% for the S&P 500. Since listing, Reddit returned 56% a year against roughly 17% for the S&P 500, but its 81% volatility left a lower return per unit of swing (0.69 versus about 1.1 for the index). Advertising made up $762 million of the $805 million in Q2 2026 revenue, up 61% year over year, yet management said search referrals declined and it has little visibility into search traffic, so the article expects the stock to stay volatile.
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