Reddit, Inc’s (NYSE:RDDT) sharp rally on Thursday put its leveraged ETF proxies in the spotlight, with the Corgi RDDT 2x Daily ETF (BATS:RDDC) and GraniteShares 2x Long RDDT Daily ETF (NASDAQ:RDTL) both gaining nearly 12%.
The move came as Reddit climbed more than 6% after CEO Steve Huffman discussed the social media platform’s growth priorities at the Goldman Sachs 2026 Communacopia + Technology Conference.
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RDDC and RDTL Magnify the Move
The outsized gains in RDDC and RDTL reflect their investment objective. Both seek roughly 2x the daily performance of Reddit stock, before fees and expenses.
That means a 6% one-day gain in RDDT can translate into a move of approximately 12% for a 2x leveraged ETF, although actual returns can differ because of fees, financing costs and daily tracking.
For investors betting on continued momentum in Reddit, these funds offer a high-risk way to amplify short-term moves without directly trading options.
But leverage works both ways. A 6% drop in RDDT could trigger roughly a 12% single-day loss for these ETFs, while multi-day compounding can cause returns to diverge significantly from twice Reddit’s cumulative performance.
RDDC has experienced significant volatility over the past year. Its 52-week range reflecting a high of $25.65 and a low of $10.13, indicating a potential for substantial price swings.
RDTL also experienced volatility over the past year, with a 52-week range from $10.89 to $89.84.
Why Did Reddit Surge?
Huffman said Reddit’s focus over the next 12 to 18 months will remain on user growth and new-user retention, highlighting strong engagement. The platform recently logged several hundred thousand daily unattributed app downloads, while users generated 1 billion posts and comments last quarter—about 4% of Reddit’s total content corpus.
Piper Sandler reinforced the bullish outlook, raising both its third-quarter digital advertising growth estimate and its Reddit ad-spending forecast by 30 basis points, according to Guru Focus.
Audience Reset Adds Another Twist
Reddit’s outlook included one snag: Piper Sandler expects September audience-size estimates to drop about 20% due to an Ads Manager methodology change. However, the brokerage framed this as a one-time measurement reset rather than weakening user activity, noting it won’t impact ad auctions, optimization, or delivery.
Reinforcing that distinction, Piper noted August ad spending beat expectations by 60 basis points and raised its overall Reddit ad forecast. For leveraged ETFs like RDDC and RDTL, the setup offers high upside if Reddit’s core ad momentum holds—or sharp downside if the stock reverses.
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