Reddit (NYSE:RDDT) Sees Strong Trading Volume on Strong Earnings

Reddit Inc. (NYSE:RDDT) shares saw unusually-high trading volume on Friday following a stronger than expected earnings report. 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 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.28. The company had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. Reddit’s revenue for the quarter was up 69.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.36 earnings per share.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q4 beat and strong guidance — Reddit reported Q4 EPS and revenue well above estimates, posted materially higher profits and gave Q1 revenue guidance above Street expectations; management highlighted AI tools boosting ad monetization. Reuters: Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion buyback announced — Board approved a $1B share repurchase program, which reduces float and can support EPS and the stock price over time. BusinessWire: Reddit announces $1B repurchase program
• Positive Sentiment: Analyst upgrades and higher price targets — Needham reaffirmed a buy and set a $300 PT; B. Riley raised its PT to $250 and keeps a buy rating, signaling strong sell‑side conviction after the quarter. Benzinga: Needham reaffirms buy TickerReport: B. Riley raises price target
• Positive Sentiment: Longer-term product tailwinds — Management flagged AI-powered search and integrated AI features as a new monetization avenue, which investors see as expanding TAM and advertiser demand. TechCrunch: Reddit looks to AI search
• Neutral Sentiment: Valuation debate persists — Several pieces note divergent DCF views and that shares still trade at a high multiple, underscoring differing analyst assumptions about growth and margins. Yahoo Finance: Valuation check
• Neutral Sentiment: Metrics disclosure change — Reddit plans to stop reporting logged‑in vs logged‑out user counts in 2026; that reduces one public engagement metric and may make future user-trend analysis harder. Shacknews: Reddit discontinues logged-in vs logged-out reporting
• Negative Sentiment: Insider selling pressure — CEO stock sales (~$3.3M) were reported and have been cited as a reason for intraday weakness and recent share pulls, drawing investor attention and short‑term selling. AmericanBankingNews: Insider selling
• Negative Sentiment: Short-term pullback coverage — Some outlets highlighted a pullback ahead of earnings driven by the insider sale and volatility, which can amplify short-term downside despite the strong quarter. Schaeffer’s Research: Pullback ahead of earnings

Analysts Set New Price Targets

RDDT has been the topic of a number of research analyst reports. Raymond James Financial reissued a “strong-buy” rating and issued a $250.00 target price (up previously from $225.00) on shares of Reddit in a research report on Monday, October 20th. Guggenheim boosted their price objective on Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a report on Friday. Zacks Research lowered Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. B. Riley lifted their target price on Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a research report on Friday. Finally, Sanford C. Bernstein boosted their price target on shares of Reddit from $190.00 to $210.00 and gave the stock a “market perform” rating in a research note on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, seventeen 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, Reddit currently has a consensus rating of “Moderate Buy” and an average price target of $241.48.

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 27,159 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $225.73, for a total transaction of $6,130,601.07. Following the sale, the chief operating officer owned 1,157,369 shares of the company’s stock, valued at approximately $261,252,904.37. This trade represents a 2.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $212.61, for a total value of $2,976,540.00. Following the sale, the chief technology officer owned 167,694 shares of the company’s stock, valued at approximately $35,653,421.34. The trade was a 7.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 523,511 shares of company stock worth $114,237,285 over the last three months. Company insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after buying an additional 1,083,540 shares in the last quarter. State Street Corp lifted its position in Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company’s stock valued at $570,819,000 after acquiring an additional 451,792 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in Reddit by 7.5% in the second quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company’s stock valued at $308,846,000 after acquiring an additional 143,680 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Reddit by 72.1% during the second quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company’s stock worth $299,044,000 after purchasing an additional 833,245 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Reddit during the second quarter worth about $294,254,000.

Reddit Price Performance

The firm has a market cap of $28.42 billion, a price-to-earnings ratio of 85.97, a PEG ratio of 1.06 and a beta of 2.17. The stock has a 50-day moving average price of $222.78 and a 200 day moving average price of $214.72.

Reddit Company Profile

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.