ALERT: This Stock Just Got Added To The S&P500

So, Reddit got added to the S&P 500. What exactly does this mean for Reddit and what should follow? What's going on, guys? It's Ricky. Let's go ahead and jump right into it. Pretty exciting news for Reddit investors. That's if you don't take kind of like recent performance into consideration. So, first off, Reddit was a really good performing company. Technically speaking, it ran up to highs of nearly 300, but unfortunately recently it was trading at lows of 140 150, but now due to the S&P 500 inclusion, it actually gapped up right 11%. Rightfully so. Now, I got a message sent to me by one of our traders and was being asked, "Hey Ricky, look, it moved up 11%. Reddit doesn't have the best performance based off of previous patterns. Is this a potential overbought reversal? I want to short tomorrow now. One of the things that I want to remind you is again, you can do whatever it is that your heart desires. Right? But the thing that I wanted to remind you is, well, what does it mean to be included into the S&P 500? This isn't just a conspiracy or it's not looking to be included. It is. That means that index funds and ETFs, anything that tracks the S&P 500 is now going to have to buy Reddit to gain exposure. That means more buying pressure can begin to um actually present itself. That means in the days that follow, you might actually see something that wasn't present before. With that being said, not just technically speaking, but let's look at it fundamentally. Again, I'm going to be using the Investing Pro software. So again, if you're performing technical analysis on the companies that you're trading or investing, that's fine. But are you performing a fundamental analysis? When you pull up Reddit very quickly, you can see that fair value. There's 16% upside not taking the aftermarket hours into consideration, right? 16% upside. A bunch of reasons on why they're bullish on Reddit. Holds more cash than debt on its balance sheet. Net income is expected to grow this year. Analysts anticipate sales growth revenue over the next uh or the current year for analysts have revised their earnings upwards for the coming period. P ratio wasn't incredibly high. It's not super super low, especially after taking a 35% hit from recent all-time highs. It's not like its P ratio is incredibly low. It's just a lot cheaper than what it once was before. 34.9 times its earnings. It's a company that produces $2.7 billion in revenue, $871 million in net income. Not too too impressive, but again, it's something. Again, its revenue growth is impressive. uh reporting revenue of $85 million up 61% year-over-year. Its performance recently is quite attractive, right? If you ever want to look into the flowcharts to see how this company actually makes money and spends money, that is the whole point of Investing Pro. So, again, if you want to download the software, it's the first link in the description down below to get 50% off. It breaks down to like $9 a month. With that being said, you want to look into the bull case, but most importantly, you want to look into the bare case. What could possibly hold you back from wanting to invest into this company? Everyone's here to encourage you to buy. Remind yourself what are the risk. Something that beginner investors and traders do not take into consideration enough. US daily active users have declined 300K. Google AI overview are having border impact or broader impact. My apologies. No new AI licensing deal with Google or OpenAI were announced. stock fell 22.8% on July 31st despite strong earnings beat. Advertising represents 95% of its revenue. So it looks like it does have a really big concentration to its ad rev. But again, maybe that's why it's not technically performing the best on the monetary side, right? Revenue is growing. Uh but it doesn't mean that its margins aren't incredibly attractive, right? You can see that it's all over the place when it comes down to reporting earnings. a 20% drop, 12% uh in the green, 8% drop, 1% decrease, 26% rise, 2% decrease, 4% drop. Um so it's kind of all over the place. The next time it's set to report earnings is November 4th. Something to look out for. But the big thing that again you want to be aware of is the question was does it make sense to possibly short this tomorrow? Now again, could this be an overreaction? Possibly. But an inclusion to the S&P 500 isn't just a normal or maybe short-lived catalyst. It does create a lot of hype and excitement, but again, like we said, a lot of index funds and ETFs are going to have to start buying this stock to gain that exposure. So, I wouldn't say it would be the smartest thing to just blindly start shorting it, expecting it to correct. It's not like it reported false news or Trump sent out a tweet of Reddit, great American company, time to buy it now, right? Like those are more short-term positive catalysts. They eventually die with the hype, right? This is it's actually getting included. Now, again, getting included doesn't mean it's the end all beall. Normally, when a stock gets included into the S&P 500, another one gets removed. It still has to maintain its spot there. So, that's one thing to also remind yourself. being included into the S&P 500 doesn't mean that you're now just guaranteed to stay there for life. There are many times that again it can be a negative factor if it ends up not meeting investors expectations andor some of the S&P 500's criteria. But I just wanted to make sure that you understood what it meant to be included and maybe to not jump the gun just because something looks overbought to potentially just want to short it. And with that being said, the S&P 500 hit new all-time highs today. And NASDAQ right after the PPI report hit highs of 733, almost 734. And if you zoom out a little bit on the day chart, you can see that we are really, really close to previous all-time highs. My question to remind you and to ask yourself, are you buying more at these elevated levels? Right? Based off of previous patterns, are you buying more here at 732 knowing that previous highs are 750, right around there, 747 for QQQ, or are you going to begin to trim and take profits? What has been one of the biggest mistakes that we've seen traders and investors make in 2026 and 2025? What happened with Bitcoin? Greedy investors added too much size at overbought levels. So when market volatility and uncertainty began to present itself, corrections followed and they paid the price for it. What happened not just with Bitcoin but in the South Korean markets, right? What happened with a lot of the memory chip companies that were trading at all-time highs and then they took 50% hits, right? Please be careful at overbought levels. You shouldn't be scared or encouraged to sell. You should just keep in mind to not be overleveraged in case markets do begin to pull on back that you welcome it. How exciting would it be that if markets pull on back, you're able to take advantage of that opportunity? Because that's truly what it is if you're truly an investor in this market. Now, again, just because markets are overbought doesn't mean that you should just justify shorting. Shorting comes at a greater form of risk and it's a terrible thing when direction is against you. With that being said, again, we are approaching previous highs. We're still waiting for confirmation of a rejection and some stocks are more overbought than others. One of the companies that I traded today was Micron. Made $2,100 on this one. I did end up carrying another 50 shares or not another I ended up carrying 50 shares short overnight. So, we'll see how the markets open tomorrow. So, if you tune on into our live trading session tomorrow at market open, you'll most likely see me trade Micron. And again, that's the second link in the description of this video if you want to tune on into tomorrow's live session. With that being said, Micron and a lot of these recent chip stocks have recently gapped up. Common resistance range right around a thousand for Micron. Every time it rips up, it sells back off. Rips up to about a thousand, sells back off. Rips up to a thousand, sells back off. Rips up to nearly a thousand, sells back off. Rips back up, sells back off. We're approaching a previous resistance range. Patterns tend to repeat themselves. They don't always have to. I'm just making you aware of what I see and what I'm not afraid to take advantage of. I'm not going all in. Uh 50 share short position is a relatively small short for me in comparison to my overall account size. With that being said, I saw it to be an attractive enough opportunity that I wanted some exposure and I'm just sharing it with you. With that, uh the only other one that I ended up uh trading today is Cororeweave. Cororeweave is also one of those notorious stocks that reported earnings. Huge gap up and the sell-off has barely started. I missed out the big move. A few of our traders killed it today from overall highs of 117. Coreweave pumped for no reason. That's how we know markets are irrational. They're pumping to such elevated levels, some more than others with the with these individual stocks. Yet, they literally have no fundamental reason on why they're breaking out. Corweave reported earnings days ago, and it's still acting as it just reported today. Again, just as quick as they run up, it's the rubber band effect. Eventually, they will fall back down. I was only able to make $1,000 on this one. This short is completely closed. But I am excited. I'm excited for Cororee because it's been a type of stock that just consolidates. It rips up, it sells off. It rips up, it sells off. Again, by understanding overbought and oversold levels, you know when to wait for the opportunity. Once we get confirmation of a sell-off, we have a long way down from current highs to previous lows. 37% downside. And we all know that if overall markets begin to drop, it's always the most speculative stocks that will come crashing down. And if you look into cororeweave, you can actually see that this stock, if I'm not mistaken, trades at a negative 30p ratio and it has a $1.9 billion loss that it goes through every single year. Again, if you want to invest in it, I think talk is cheap. Put your money where your mouth is. But for me, I am more than happy to short what I believe to be an overvalued, overhyped up stock that's incredibly speculative where I see there to be huge downside as soon as markets begin to fall. As markets remain elevated, again, they support irrational valuations. When markets uncertainty begins to inject itself, the most uncertain stocks crash the hardest. The only other one that I'm I don't want to say the only other one, um, but there's two that we're paying attention to as well. SpaceX becoming a little bit more on the overextended side and Palunteer becoming a little bit more on the overbought side. Huge pullback potential. has a history of selling off from the highs of 200 to the lows of 105 I believe and now it's trading at nearly 180. I want to let it push as high as it possibly can and I will I will wait patiently and short it once direction and confirmation are in my favor. I'm not trying to pull a Michael Bur and try to predict the market and and I need to get in at the best price. I I don't have his kind of money and I'm also not him, right? But I see an opportunity. I see the the attractiveness of, hey, if Palunteer does begin to sell back off to previous lows, it offers 30 to 40% pullback. I love that. Even if I capture just half of that, I don't need to do it with a full position size. Even if I just capture with, you know, 25 maybe $50,000 and just go into a swing trade with it once direction and confirmation are in my favor, I would love the opportunity to short Palunteer, especially knowing its history that it rallies and it rallies strong. But when it sells off, it crashes just as hard. And that's the one that I'm really excited to follow up with. So, I'll do my part in continuously keeping you guys up to date. Again, if you guys have any questions whatsoever, feel free to let me know. But I just wanted to make sure that you guys understood what it meant to be included into the S&P 500. It is a great milestone for Reddit investors and maybe not the smartest thing to short the following day of its inclusion announcement. Again, just because of its index and ETFs that are set to have to buy the stock in the up and coming days or weeks. So again, if you have any questions whatsoever, feel free to comment down below. And like I said, the Investing Pro software should be the first link in the description down below to do your fundamental analysis. And if you want to watch me trade live as soon as tomorrow, that's the second link in the description down below. It's a onetime payment for lifetime access. We have members that signed up back in 2018. They paid once and they still get to watch me trade live every day. I hope to see you there. Like always, let's make sure that we end the year on our green note. Take care team.