Shares of Reddit Inc ( RDDT ) are trading marginally lower Monday morning, taking a slight breather after touching a new 52-week high earlier in the session. Here’s what investors need to know.

What To Know: The move follows a significant rally in recent weeks, sparked by a stellar second-quarter earnings report that far surpassed Wall Street expectations and ignited a wave of analyst upgrades.

The social media company announced second-quarter revenue of 499.6 million, a remarkable 78% increase year-over-year that sailed past the consensus estimate of 424.7 million. Earnings were equally impressive, coming in at 48 cents per share, more than doubling analyst projections of 19 cents per share.

This strong performance was underpinned by robust user growth and engagement. Daily active unique users climbed 21% to 110.4 million, driven by a 32% surge in international users, demonstrating the platform’s expanding global reach.

Looking ahead, Reddit ( RDDT ) provided a bullish third-quarter outlook, forecasting revenue between 535 million and 545 million, significantly above the Street’s estimate of 471.5 million. The strong results and guidance prompted multiple analysts to raise their price targets, with several pointing to the company's rapidly improving monetization.

Average revenue per user soared 47% year-over-year, while the firm’s vast archive of human conversation is seen as a key asset for training AI models. The modest pullback Monday morning appears to be consolidation after the stock’s powerful post-earnings surge, as investors digest recent, strong fundamental news.

Price Action: According to data from Benzinga Pro, RDDT shares are trading marginally lower at $243.50 Monday morning. The stock has a 52-week high of $253.14 and a 52-week low of $52.39.

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How To Buy RDDT Stock

By now you're likely curious about how to participate in the market for Reddit ( RDDT ) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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