Reddit Stock Plunges 26% From Highs, Yet Call Options Have Surged 575%: Is A Rebound Brewing?

1. RDDT fell 26% from its 52-week high after an earnings miss and CEO share sale. Investors showed concern over the mixed Q4 results. 2. Revenue soared 71% YoY while daily active users dipped due to Google's algorithm tweak. This discrepancy heightened market uncertainty. 3. Hedge funds increased positions and call options surged 575%, hinting at a potential bottoming process. Retail investors, however, continued selling. 4. Technical indicators are bearish short-term, yet the 200-day moving average suggests long-term support. CEO Huffman noted a traffic rebound in Q1. 5. Future catalysts include international expansion, adtech innovations, and AI data licensing deals. Positive Q1 revenue forecasts and strong EBITDA growth underline potential recovery.