RDDT · PEAD ↓ 80

Reddit reported Q3 2026 EPS of $1.40 on 2026-10-29, beating the $1.31 consensus by $0.09 (+6.87%).

Print-day reaction was –3.8% versus the prior close, a sharp negative response despite the EPS beat — the market sold into the news. The overnight gap to T+1 open was a further –22.6%, a dramatic post-close flush suggesting material disappointment beyond the headline earnings figure. Over the following two trading sessions the stock drifted an additional +4.8%, a partial recovery that did not come close to reversing the overnight collapse. Cumulative abnormal return of –26.3% versus SPY.US places this firmly in PEAD short territory; the drift confirms and extends the initial negative reaction, with the holding window running through 2027-01-26.