As traders get ready for the first trading day of December, Reddit, Inc. (NYSE: RDDT) heads into Monday’s U.S. market open as one of the most closely watched growth names in tech.
The stock closed the shortened Thanksgiving week at $216.47 on Friday, November 28, up 4.29% on the day and roughly 18% over the past week, after a string of strong sessions following its blockbuster Q3 earnings. [1] After-hours trading nudged the price slightly higher to about $217.08. [2]
Between November 28 and 30, 2025, a wave of fresh commentary arrived: trader-focused write‑ups around a GDPR-driven rally, new institutional buying disclosures, and updated analyst and algorithmic forecasts. Here’s how Reddit stock looks heading into the December 1, 2025 open, based on that latest information.
Reddit stock price snapshot before the December 1 open
Based on the latest end‑of‑week data:
- Last close (Nov 28, 2025): $216.47 (+4.29% on the day)
- After-hours (Nov 28): $217.08 (+0.28%) [3]
- 1‑week move: ~+18% (vs ~7.5% for the broader U.S. interactive media group) [4]
- 52‑week range: $79.75 – $282.95 [5]
- Market capitalization: ~$41 billion at Friday’s prices [6]
- Valuation: trailing P/E around 120–125 and PEG ratio near 2.3, signaling a high‑growth, high‑expectation profile [7]
- Volatility: average weekly move about 10%, higher than the broader U.S. market (~6.5%) [8]
From its 52‑week low, RDDT is still up almost threefold, and about 54% over the last year, even after a volatile autumn that saw the stock briefly trade above $280. [9]
What actually moved Reddit stock on November 28?
Most of the immediate excitement around RDDT on Friday, November 28 came from short‑term traders reacting to:
- A sharp pre‑market rebound
Trader‑focused outlet StocksToTrade reported that Reddit shares jumped about 11.3% in pre‑market trading on Friday, reversing a 7.8% drop from the prior session and leaving the stock up roughly 4.6% on the day by the close. [10] - Hopes around EU “GDPR simplification”
That same coverage highlighted optimism that Reddit could benefit from the European Commission’s new “Digital Omnibus” simplification package, which proposes easing and harmonising parts of the EU’s digital rulebook — including the GDPR, AI Act and Data Act — to reduce compliance burdens. [11]- Commentators speculated that a lighter administrative load and clearer rules could help Reddit scale its AI‑driven moderation and engagement tools, supporting monetization without as much legal overhead. [12]
- Spillover from the TikTok divestiture saga
The same trader notes tied RDDT into the ongoing U.S.‑mandated TikTok restructuring, where TikTok’s Chinese parent ByteDance is in the process of selling a majority stake in the app’s U.S. operations to a consortium led by Oracle and Silver Lake under a 2024 national‑security law. [13]- The argument: if TikTok’s U.S. footprint is constrained or distracted by politics, Reddit could benefit from ad dollars and attention rotating into alternative user‑generated content platforms.
- Technical levels traders are watching
Across two related November 28 and 29 trading notes, StocksToTrade and Timothy Sykes’ team framed RDDT as: [14]- In a “dominant upward trend” after bouncing from earlier pullbacks
- Showing support near the $208 area and resistance around $220
- A buy‑the‑dip candidate for aggressive traders, with suggested stop‑losses just below support
All of this is short‑term trading color, not fundamental research. But it explains why RDDT’s Friday move was bigger than the broader market and why day traders are circling the name again going into Monday.
Fundamentals in focus: Reddit’s Q3 2025 blowout
Underneath the volatility, the fundamental story is what drew institutional money and many analysts into the stock.
Q3 2025 headline numbers
For the quarter ended September 30, 2025, Reddit reported: [15]
- Revenue: $584.9 million, up 67.9% year‑on‑year, beating consensus by ~6%
- GAAP EPS: $0.80 vs. $0.50 expected
- Adjusted EBITDA: ~$236 million, with a hefty 40.3% margin
- Operating margin: 23.7% (vs ~2% a year earlier)
- Free cash flow: $183.1 million, a 31.3% FCF margin
- Domestic daily active visitors: 51.6 million, up 7.1% YoY
- ARPU (average revenue per user): $5.04, up 40.8% YoY
This is the kind of combination — rapid growth plus rapidly improving profitability — that big investors and growth‑at‑a‑reasonable‑price (GARP) funds tend to love. StockStory, in a November 29 research report, called Reddit “one of the best consumer internet stocks out there”, emphasizing its 43.6% three‑year compound revenue growth, elite ~90% gross margin, and increasingly robust free‑cash‑flow profile. [16]
Q4 2025 guidance
Reddit’s outlook for the current quarter (Q4 2025) also came in ahead of expectations: [17]
- Q4 revenue guidance: around $660 million at the midpoint, roughly 3% above sell‑side consensus
- Q4 EBITDA guidance: midpoint around $280 million, again comfortably ahead of prior forecasts
Add to that a net cash position of about $2.2 billion against only ~$25 million in debt (about 5% of market cap), and Reddit is entering the holiday season as a cash‑rich, high‑margin, high‑growth platform. [18]
Institutional buying vs. insider selling (news from Nov 28–30)
Over the November 28–30 window, two new regulatory‑filing stories surfaced that matter for supply–demand dynamics in the stock.
MarketBeat: Jefferies & others add to positions (Nov 29)
A November 29 MarketBeat piece reported that Jefferies Financial Group raised its Reddit stake by 57.7% in Q2, now holding 3,420 shares worth about $515,000. [19]
The same article highlighted several other institutional moves: [20]
- LPL Financial boosted its position by 58.4% to 104,230 shares (~$10.9 million).
- Zürcher Kantonalbank increased holdings by 187.6% to over 41,000 shares.
- Multiple RIAs and funds added smaller new stakes.
However, the story also flagged heavy insider selling:
- CEO Steve Huffman sold 18,000 shares at an average price of $229.10, raising about $4.1 million.
- COO Jennifer Wong sold 63,427 shares around $192.72, for roughly $12.2 million.
- In total, insiders sold 406,370 shares worth about $85.8 million in the last quarter, though insiders still own about 34.25% of the company. [21]
MarketBeat: Virtue Capital joins the party (Nov 30)
On November 30, a second MarketBeat article detailed that Virtue Capital Management took a new 2,000‑share position in Reddit, worth roughly $301,000, while reiterating strong institutional interest from: [22]
- Teacher Retirement System of Texas, which increased its stake by 880.5% to 94,676 shares
- JPMorgan Chase, which nearly doubled its holdings to 1.9 million shares
- Several other hedge funds and VCs adding or topping up positions
That piece again emphasized Reddit stock being “up 4.5%” on the week, opening Friday at $216.90, with: [23]
- Market cap near $41.1 billion
- P/E ratio around 124.7
- Beta of 2.14 (meaning it typically moves more than the overall market)
Takeaway:
- Big money is clearly still buying, especially institutions that specialize in growth and internet platforms.
- At the same time, senior insiders are cashing in some of their gains after a massive post‑IPO run.
- For many professional investors, that mix is acceptable — provided the business keeps beating expectations.
How Wall Street and models are valuing Reddit (late‑November snapshot)
Traditional analysts: upside, but not huge
Several sources update their Reddit views in or just before our November 28–30 window:
- MarketBeat’s analyst summary shows a consensus “Moderate Buy” for RDDT, with an average 12‑month price target of roughly $226.33 — about 4–5% upside from current levels. The high target sits at $300, with a low around $75. [24]
- A Zacks/Finviz article from November 24 noted an average brokerage recommendation (ABR) of 1.88 on a 1–5 scale, between Strong Buy and Buy, based on 26 brokerage firms:
- TickerNerd, aggregating Wall Street estimates, lists a median 12‑month price target of $245, implying roughly 13% upside from the $216.47 close, and characterizes Reddit as a “strong buy” based on 18 Buy ratings, 10 Holds and 1 Sell. [27]
- Zacks’ target range, as summarized on its forecast page, runs from $115 on the low end to $300 on the high end, with an average target about $11–12 above the latest closing price. [28]
Put simply: Wall Street is bullish but not euphoric. After such a huge run from the IPO, many analysts still see upside, but modest compared with earlier in the year.
Quant & AI‑driven forecasts: mixed signals
Alongside human analysts, several algorithmic forecasting sites updated their Reddit models at the end of November:
- CoinCodex (updated Nov 30, 22:25): [29]
- Classifies RDDT’s overall technical sentiment as “bullish”, with 20 bullish indicators vs 2 bearish.
- Notes Reddit’s value grew 54.2% over the past year, but only 13 green days in the last 30 and a Fear & Greed Index at “Fear”, highlighting volatility.
- Short‑term forecast:
- Dec 1, 2025: ~$216.99 (essentially flat vs current price)
- Followed by gradual declines toward roughly $196 by Dec 5, suggesting near‑term consolidation after the run‑up.
- For December overall, it projects a trading channel between $175.44 and $216.99, with an average around $183.75.
- StockScan offers a more contradictory view: [30]
- On technical indicators, it rates RDDT a “Strong Buy”, with 10/10 moving averages flashing “Buy” and a majority of oscillators either neutral or positive.
- On long‑term fair value, its model oddly expects an average price of just ~$90.06 for 2025, about 50–60% below the current level, before forecasting huge gains out toward 2030–2050 (with values like $279 by 2030 and over $1,000 by 2050).
These mechanical models can be useful for gauging momentum, but their long‑term projections depend heavily on assumptions you should treat with caution. None of them represent a guaranteed outcome.
Technical picture: powerful uptrend, but extended
From a chart and factor perspective, Reddit looks like a classic high‑beta momentum stock into December:
- Price action: RDDT climbed from the mid‑$180s on November 21 to $216.47 by November 28, with especially strong sessions on Nov 24 (+6.3%) and Nov 25 (+12.0%). [31]
- Relative strength: Investor’s Business Daily recently highlighted Reddit as part of an “elite club” of stocks with Relative Strength (RS) ratings above 90, noting that the stock is extended above a prior buy‑zone after blasting through an earlier base. [32]
- Volatility: Simply Wall St pegs RDDT’s average weekly move at 10%, higher than both the broader U.S. market and the interactive media industry average. [33]
- Key levels traders are watching:
- Support zones around $200–$208, which roughly line up with the recent consolidation after earnings and the support level flagged in Friday’s trader notes. [34]
- Immediate resistance in the $220 area, also cited as a short‑term target by trading commentary. [35]
- 50‑day moving average near $206 and 200‑day around $182–$183, both well below Friday’s close, reinforcing that the stock is still trading above its key trend lines. [36]
For technically minded traders, that combination often translates to: trend is up, but the stock is no longer “cheap” or low‑risk on a chart.
Retail sentiment: Redditors are (unsurprisingly) bullish on Reddit
On Reddit’s own communities, enthusiasm is high:
- The November 28 daily thread on r/redditstock was full of “mooning” memes and comments calling Reddit “cheap” at $216 and aiming for $250–$300 by year‑end, with users joking about “40% discount codes” expiring and cheering the Black Friday rally. [37]
- Weekend discussion threads on r/stocks and other communities repeatedly mention RDDT as a high‑margin, fast‑growing ad platform, often pointing to its 90%+ gross margins and rapid EPS revisions. [38]
Of course, anonymous forum enthusiasm is not an investment thesis, but it does reinforce that RDDT is a retail favorite, which can amplify volatility both on the way up and the way down.
Key drivers to watch before the December 1, 2025 open
Heading into Monday’s U.S. session, here’s what looks most important for RDDT in the very near term:
1. Follow‑through after the GDPR “Digital Omnibus” headlines
The European Commission’s Digital Omnibus simplification package, announced November 19, proposes streamlining digital rules, including GDPR and AI‑related legislation, to reduce compliance burdens and make cross‑border operations easier. [39]
If investors continue to believe this could:
- Make it easier for Reddit to deploy AI moderation and recommendation tools in Europe, and
- Reduce legal and administrative friction around data processing and ad targeting,
then the “regulation tailwind” narrative that powered Friday’s move may persist.
However, these proposals are early‑stage and will require negotiations and approvals across EU institutions. The real‑world impact is likely years away, so there’s a risk the market fades this story once the initial excitement passes.
2. TikTok’s U.S. restructuring and the social‑media ad landscape
TikTok’s mandated divestiture and restructuring into a U.S‑controlled entity — with ByteDance expected to retain less than 20% — remains in the political spotlight. [40]
If regulatory uncertainty or restrictions limit TikTok’s U.S. reach or ad offerings, brands may look to diversify budgets across platforms like Reddit, Pinterest, Snap and YouTube:
- That doesn’t automatically send ad dollars to Reddit, but it keeps Reddit in the conversation as an alternative, high‑intent, community‑driven channel.
- Any fresh headlines on TikTok over the weekend or Monday morning could spill over into RDDT sentiment — bullish or bearish.
3. Valuation digestion after a huge run
With RDDT trading at:
- ~120x trailing earnings,
- High‑20s to low‑40s multiples of EBITDA, and
- A share price that’s up more than 50% in a year,
even bullish analysts like those at StockStory and many on Wall Street emphasize that valuation is no longer easy to ignore. [41]
A recent Seeking Alpha headline (Nov 30) — “Reddit Stock: Expensive Valuation, But Growth Will Continue Over The Next Few Years” — captures the tone: growth looks compelling, but expectations are high. [42]
For Monday’s open, that means:
- Strong broader‑market risk‑on sentiment could pull RDDT toward or above the $220 resistance area, especially if traders chase anything AI‑related. [43]
- Any risk‑off shift, or a simple bout of profit‑taking, could send shares back toward $208–$200 support fairly quickly, given the stock’s elevated volatility. [44]
4. Ongoing headlines about insider selling and class‑action risk
Beyond the fresh Q3 beat, there are still overhangs:
- A string of insider sales throughout 2025, including the CEO, COO and CTO, has already drawn scrutiny. [45]
- Earlier in the year, a law firm announced a class‑action lawsuit against Reddit related to its IPO disclosures and user‑data practices, which remains an overhang even as the stock rallies. [46]
Any new legal developments or additional secondary offerings could temper enthusiasm around the name.
Short‑term Reddit stock forecast: scenarios for early December 2025
No forecast is certain, and this is not investment advice, but combining the late‑November news and data points, here’s how the very near term could reasonably play out:
Bullish near‑term scenario (momentum continues)
- Broader markets stay in risk‑on mode, helped by AI optimism and easing rate concerns.
- Traders continue to lean into the GDPR simplification + TikTok reshuffle narrative as a medium‑term tailwind for Reddit’s ad and data‑licensing business. [47]
- Technical traders defend the $208–$210 support area and push for a clean break above $220. [48]
In that setup, it wouldn’t be surprising to see:
- RDDT trade sideways‑to‑up between roughly $216 and $230 in early December, loosely in line with trader targets and short‑term algorithmic resistance zones (e.g., the TradingView commentary that cites $232 as a local channel target). [49]
Neutral / consolidation scenario (perhaps the most “consensus” view)
- Momentum cools as fast money locks in gains from the 18% weekly spike.
- Investors refocus on valuation and the fact that Reddit’s user growth, while solid, is no longer hyper‑explosive. [50]
- The stock oscillates between support (~$200–$210) and resistance (~$220–$230) without a decisive breakout.
This aligns closely with:
- CoinCodex’s short‑term model, which sees RDDT roughly flat on December 1 before drifting into the high‑$190s by the end of the week. [51]
- Analyst targets clustered in the low‑ to mid‑$200s (MarketBeat and TickerNerd). [52]
Bearish near‑term scenario (pullback toward the 50‑day average)
- The market turns risk‑off, or big holders use the post‑earnings strength to trim positions, especially given those lofty multiples.
- A fresh wave of headlines about insider selling or litigation dampens sentiment. [53]
Under that setup, a retest of:
- The $200 zone, and even the low‑$190s, wouldn’t be unusual given RDDT’s 10% weekly volatility and prior levels around $183–$195 earlier in November. [54]
Algorithmic forecasts like StockScan’s “average $106.97 in December 2025” look extreme compared with consensus and current business trends; those should be treated as mechanical model output, not probabilities. [55]
Bottom line for Reddit stock before the December 1 open
Going into Monday:
- The story is still fundamentally strong. Q3 showed blockbuster revenue and earnings growth, much higher margins, strong cash generation, and upbeat guidance. [56]
- Wall Street remains broadly bullish. Most covering analysts rate RDDT a Buy or Strong Buy, with average targets just above current levels and some outliers looking for $250–$300. [57]
- Short‑term traders are focused on regulatory catalysts and technical levels, especially EU digital‑rules simplification and support/resistance around the low‑$200s. [58]
- Risks remain real: rich valuation, elevated volatility, insider selling, regulatory and legal overhangs, and the ever‑present chance of macro shocks.
For investors and traders watching RDDT before the bell on December 1, 2025, the key question is less “Is Reddit a good company?” — the data increasingly says yes — and more:
“How much of its growth story is already priced in at $200+ per share, and how comfortable am I riding a stock that can swing 10% in a week?”
As always, this article is for informational and educational purposes only and does not constitute financial or investment advice. Reddit’s stock can move quickly in both directions; anyone considering a position should do their own research, consider their risk tolerance, and, if needed, consult a qualified financial adviser.
References
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