Reddit (NYSE:RDDT) Sees Large Volume Increase on Better-Than-Expected Earnings

Reddit Inc. (NYSE:RDDT) saw unusually-strong trading volume on Friday following a better than expected earnings announcement. Approximately 9,543,749 shares changed hands during trading, an increase of 84% from the previous session’s volume of 5,190,021 shares.The stock last traded at $148.9220 and had previously closed at $151.05.

The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.96 by $0.28. Reddit had a return on equity of 22.03% and a net margin of 24.05%.The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same period in the previous year, the company posted $0.36 EPS. The business’s quarterly revenue was up 69.7% compared to the same quarter last year.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 results and raised guidance — Reddit reported Q4 EPS and revenue above estimates and forecast Q1 revenue above Street expectations, a key reason the stock rallied after the print. Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion share buyback announced — management authorized a sizable repurchase program that should support EPS and reduce float over time. Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Analysts reacting — several firms raised price targets and reaffirmed buy ratings after the quarter, signaling continued bullish institutional views. These Analysts Revise Their Forecasts On Reddit Following Q4 Results
• Neutral Sentiment: AI and product roadmap could drive longer-term ad monetization — management highlighted AI search and ad tools as growth drivers, but monetization timelines remain multi-quarter. Reddit looks to AI search as its next big opportunity
• Neutral Sentiment: M&A appetite announced — Reddit told analysts it’s scouting adtech and other buys that either scale across Reddit or grow users; strategic but uncertain near-term impact. Reddit says it’s looking for more acquisitions in adtech and elsewhere
• Negative Sentiment: CEO insider selling reported — recent disclosure of a multi-million-dollar sale by the CEO has been cited as a near-term selling catalyst. Insider Selling: Reddit (NYSE:RDDT) CEO Sells $3,297,240.00 in Stock
• Negative Sentiment: Transparency change: company plans to stop disclosing logged‑in vs. logged‑out user counts in 2026 — investors may view that as reduced visibility into engagement trends. Reddit (RDDT) plans to stop disclosing logged-in and logged-out user numbers in 2026
• Negative Sentiment: Valuation and profit-taking — after the post-earnings jump, some investors appear to be locking in gains amid divergent DCF/valuation views and very high intraday volume, pressuring the share price. Reddit (RDDT) Valuation Check As Shares Lag And DCF Views Sharply Diverge

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RDDT. Jefferies Financial Group increased their price target on shares of Reddit from $300.00 to $325.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Oppenheimer reduced their price objective on Reddit from $300.00 to $250.00 and set an “outperform” rating for the company in a research note on Friday. JPMorgan Chase & Co. lowered their target price on Reddit from $227.00 to $200.00 and set a “neutral” rating on the stock in a research report on Friday. Morgan Stanley set a $240.00 price target on Reddit in a report on Friday. Finally, Evercore ISI set a $290.00 price target on Reddit and gave the stock an “outperform” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $241.31.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $220.28, for a total value of $3,965,040.00. Following the completion of the transaction, the chief executive officer owned 448,576 shares of the company’s stock, valued at $98,812,321.28. This represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CTO Christopher Brian Slowe sold 24,000 shares of the stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $192.72, for a total value of $4,625,280.00. Following the sale, the chief technology officer owned 175,694 shares of the company’s stock, valued at $33,859,747.68. This represents a 12.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 523,511 shares of company stock valued at $114,237,285 over the last three months. Insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently modified their holdings of RDDT. EverSource Wealth Advisors LLC boosted its position in shares of Reddit by 13.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 727 shares of the company’s stock worth $167,000 after acquiring an additional 86 shares during the last quarter. Kingdom Financial Group LLC. bought a new stake in Reddit in the 4th quarter valued at $146,000. Pinnbrook Capital Management LP lifted its stake in Reddit by 4.9% in the 4th quarter. Pinnbrook Capital Management LP now owns 8,670 shares of the company’s stock worth $1,993,000 after purchasing an additional 406 shares in the last quarter. Leonteq Securities AG purchased a new stake in Reddit in the 4th quarter worth $859,000. Finally, IFP Advisors Inc boosted its holdings in shares of Reddit by 33.0% during the 4th quarter. IFP Advisors Inc now owns 1,059 shares of the company’s stock valued at $243,000 after purchasing an additional 263 shares during the last quarter.

Reddit Price Performance

The stock has a 50-day moving average price of $221.22 and a two-hundred day moving average price of $215.15. The stock has a market cap of $26.39 billion, a PE ratio of 53.16, a price-to-earnings-growth ratio of 0.97 and a beta of 2.17.

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.