Reddit (RDDT) shares popped more than 10% on Monday, driven by a fresh wave of online chatter about the company's hidden gem: its data licensing business. The spark came from a viral post on X by a user named ZaStocks, which racked up over 67,000 views before the market even opened.

The post made a simple but powerful argument: Reddit's vast archive of user-generated conversations isn't just a social media feed—it's a goldmine for training large language models. The platform is reportedly one of the most frequently cited domains across major AI systems, and the value of that continuously generated, real-time data may far exceed static historical datasets.

ZaStocks followed up with more commentary, questioning whether the market was finally waking up to Reddit's core metrics. The user pointed out that Reddit is the 6th most visited website globally, carries no debt, and has no capital expenditure requirements. Then came the kicker: the company is "likely to land huge renewed data deals with the biggest AI labs on earth: OpenAI, Google and potentially Anthropic."

That kind of speculation is catnip for retail traders, and Reddit's stock has always had a meme-stock flavor. Even though it's a real operating business with advertising and data licensing revenue, its shares often swing on sentiment alone—partly because Reddit itself is the birthplace of the meme-stock phenomenon. When the crowd piles in, the price moves fast.

The rally builds on some solid recent earnings. On May 1, Reddit reported first-quarter results that showed revenue growth of 69% year-over-year to $663.4 million, with adjusted EBITDA jumping 131% to $266 million. Non-GAAP earnings came in at $1.20 per share, beating Needham's estimates by 9%. Advertising revenue grew 74% year-over-year, supported by a 75% increase in active advertisers. So there's real business momentum behind the hype.

But the technical picture is a bit of a mixed bag. RDDT is trading 9.1% above its 20-day simple moving average ($164.19) and 13.1% above its 50-day SMA ($158.50). However, it's still 5% below its 200-day SMA ($188.65). The relative strength index sits at 48.84—basically neutral, giving no clear directional signal.

The moving-average structure tells a tale of two time frames. The 20-day SMA is above the 50-day SMA, which is a bullish near-term alignment. But the death cross that formed in March—when the 50-day SMA crossed below the 200-day SMA—still hangs over the longer-term outlook. Over the past 12 months, the stock is up 42.06%, but it remains well below its 52-week high of $282.95.

For traders looking at the near term, the key levels are tight and actionable. Resistance sits at $187.50, while support is at $178. At the time of publication Monday, Reddit shares were trading at $179.60, up 10.80% on the day.

So is this the start of a sustained rally or just another meme-fueled spike? The fundamentals are stronger than they were a year ago, but the technicals suggest the stock still has something to prove. Either way, it's a story worth watching.