Ticker: RDDT · Exchange: NYSE · Date: December 2, 2025
Quick Snapshot: Reddit Stock Today
Reddit, Inc. (NYSE: RDDT) ended trading on December 2, 2025 at $222.70 per share, down a modest 0.31% on the day. The stock traded between $221.72 and $231.37 with volume of about 2.48 million shares, close to its average daily turnover. [1]
Over the past year, Reddit shares are up roughly 49%, and the stock sits well above its 52‑week low of $79.75, though still below its prior high near $282.95. [2]
By most traditional metrics, Reddit remains a high‑beta, high‑valuation growth play. Recent MarketBeat data pegs its market capitalization near $41 billion, a price‑to‑earnings ratio around 124x, a PEG ratio about 2.4, and a beta above 2.1, with 50‑day and 200‑day moving averages around $206 and $183, respectively. [3]
Key recent Reddit (RDDT) stock coverage
Reddit (RDDT) Stock: Price, News and Forecast Before the December 1, 2025 Market Open
Reddit Stock (RDDT) Jumps on GDPR Shake‑Up and Big‑Money Buying: What Investors Need to Know Today
What’s Driving Reddit Stock Around December 2, 2025?
Reddit’s share price is being pulled in three big directions at once:
- Regulatory news from Europe (GDPR “simplification”)
- New and evolving AI content deals with Google and OpenAI
- Heavy institutional buying — alongside meaningful insider selling
Let’s unpack each.
1. GDPR “Simplification” and the European Tailwind
On November 28, 2025, Reddit’s stock spiked in pre‑market trading — up about 11.3% before the bell and roughly 4–5% intraday — after traders seized on reports that the European Union is working on a “simplification” of GDPR rules that could ease the compliance burden for digital platforms and AI tools. [24]
Day‑trading outlet StocksToTrade highlighted several points that have resonated with short‑term traders:
- The prospect that looser or clearer rules could improve Reddit’s AI‑driven moderation and engagement tools, which rely heavily on user data. [25]
- A view that Reddit’s gross margin above 90% and extremely light balance‑sheet leverage (debt‑to‑equity around 0.01) give it room to invest aggressively in AI and product, even in a more regulated environment. [26]
Why does this matter so much to Reddit? Because in its 2024 Form 10‑K, the company explicitly warns that complex and evolving privacy laws in the EU and UK (GDPR, UK GDPR and a coming ePrivacy Regulation) pose material risks to its advertising and data‑licensing businesses. It notes that fines can reach up to 4% of global annual revenue and that cross‑border data transfers are getting harder, not easier. [27]
So any credible move toward simplifying GDPR in Europe is naturally read by investors as:
- A potential cost and risk reducer for Reddit’s global operations.
- A possible tailwind for AI‑driven products and ad targeting, if data flows and consent mechanics become more predictable.
For now, these are proposals and expectations, not law. But they’ve clearly become part of the Reddit bull case.
2. AI Content Deals: Reddit’s New Power Position (and New Volatility)
Reddit has quietly become one of the most important data suppliers to the AI industry — and that’s central to the stock story in late 2025.
Existing Deals: Google and OpenAI
A detailed analysis from Columbia Journalism Review points out that Reddit signed a $60 million‑per‑year licensing deal with Google in early 2024, allowing Google to ingest real‑time Reddit content for search and AI products. A similar agreement with OpenAI is estimated around $70 million per year, with Reddit now one of the most cited domains in AI answers from Google AI Overviews, Perplexity and ChatGPT. [28]
Reddit has since tightened access to its data, blocking many crawlers and suing AI startup Anthropic over allegedly unauthorized scraping — a clear signal that “pay to play” is now the default for AI companies that want Reddit’s corpus. [29]
In a separate October 2025 piece, SEO firm Stan Ventures reports that Reddit is back at the table with Google and OpenAI, pushing to move beyond flat‑fee deals to variable, usage‑based compensation that scales as Reddit’s content becomes more central to AI outputs. The article notes that Reddit has already disclosed over $200 million in contracted value tied to AI licensing agreements across multiple partners. [30]
Market Reaction: Excitement and Skepticism
Interestingly, the market doesn’t always cheer AI news. On September 19, 2025, Reddit shares fell about 4.2% even as reports emerged that the company was in fresh talks with Google to deepen their AI content‑sharing partnership. [31]
Reporting from CoinCentral framed it this way:
- The proposed expansion aims to go beyond training data into a more two‑way partnership, where Reddit content is more visibly integrated into Google’s AI experiences (like Search Generative Experience), while Reddit receives traffic and deeper monetization opportunities. [32]
- Investors, however, questioned how quickly such deals translate into revenue, and whether they justify Reddit’s already premium valuation.
Those doubts are part of why Reddit remains volatile: AI licensing is clearly a real business line, but the timing and magnitude of the payoff are still uncertain.
AI Citations Cut Both Ways
Reddit’s fortunes are now tied not only to direct licensing cash, but to how often AI systems surface Reddit content.
CJR notes that from August 2024 to June 2025, Reddit became the most cited domain by Google AI Overviews and Perplexity, and the second most cited by ChatGPT — helping triple Reddit’s readership off the back of a Google algorithm update that boosted forums like Reddit and Quora. [33]
But a widely shared LinkedIn analysis later highlighted a darker side of that dependency: in early October 2025, a change in Google’s search behavior led to a sharp drop in how often ChatGPT cited Reddit — from about 9.7% of responses to roughly 2% — and Reddit’s stock fell more than 10% as that loss of AI visibility rippled through the market. [34]
In short:
AI is both a growth engine and a new kind of platform risk for Reddit.
3. Big‑Money Buying vs. Insider Selling
Even as Reddit rides AI and regulatory headlines, its shareholder base is changing fast.
New Institutional Stakes
Recent 13F filings, summarized by MarketBeat, show major new positions in Reddit:
- Mackenzie Financial Corp opened a position of 241,615 shares worth about $36.38 million, representing roughly 0.13% of the company. [35]
- Norges Bank (Norway’s sovereign wealth fund) disclosed a much larger buy: about 1.95 million shares valued around $294 million, or roughly 1.04% of Reddit. [36]
Other filings show firms like Jefferies Financial Group, LPL Financial and Zurcher Kantonalbank significantly increasing their positions, with Jefferies boosting its stake by 57.7% and LPL Financial now holding over 100,000 shares. [37]
Short version: “Smart money” is clearly circling Reddit.
But Insiders Are Cashing Out
At the same time, insiders have been net sellers:
- MarketBeat notes that over the last quarter, company insiders sold about 406,000 shares, worth roughly $85.8 million. [38]
- Sales include CEO Steve Huffman (about 18,000 shares), COO Jen Wong (~63,000 shares) and CTO Christopher Brian Slowe (24,000 shares), though each continues to hold sizable stakes. [39]
Insider selling is common after an IPO and as restricted stock vests, but the sheer dollar value reinforces the narrative that:
- Long‑term institutions are buying Reddit, while
- Founders and executives are steadily diversifying.
Fundamentals: Reddit’s Q3 2025 Earnings at a Glance
The fundamental backdrop for all this volatility is a very strong third quarter of 2025.
According to Reddit’s official Q3 earnings release and subsequent coverage: [40]
- Revenue: about $585 million, up ~68% year‑over‑year.
- Advertising revenue: around $549 million, up ~74% YoY, driven by more advertisers and better ad formats.
- Data licensing and other revenue: roughly $36 million, about 7% growth and still a small share of total revenue — but highly strategic given AI demand.
- Daily active users: global DAUs reached 116 million, up ~19% YoY.
- Profitability:
- Net income of about $163 million, versus $30 million a year earlier. [41]
- EPS of $0.80, beating consensus estimates near $0.50–$0.52. [42]
- Adjusted EBITDA around $236 million, implying an EBITDA margin near 40%, a long‑term profitability target Reddit had originally framed as a multi‑year goal around its IPO. [43]
The Q3 beat prompted Reddit to raise its Q4 guidance:
- Q4 revenue outlook of $655–$665 million, ahead of Wall Street’s prior expectations (~$638 million). [44]
- Adjusted EBITDA forecasted between $275 million and $285 million, implying continued strong margins. [45]
A TIKR earnings recap adds more color: [46]
- Active advertisers increased by more than 75% year‑over‑year.
- Average revenue per user (ARPU) hit $5.04, ahead of ~$4.82 expectations and up 41% YoY, but still well below mature peers like Meta — leaving plenty of runway for monetization.
- International growth is doing a lot of lifting: logged‑out users jumped 24% YoY, helped by machine translation into 30 languages.
- U.S. logged‑in user growth, however, slowed to 7%, marking the fifth consecutive quarter of deceleration in Reddit’s most lucrative geography.
So the fundamental picture is:
High growth, newly strong profitability, but early signs of saturation in core U.S. users — exactly the kind of mix that justifies both optimism and caution.
How Reddit Makes Money in the AI Era
By late 2025, Reddit’s revenue stack looks roughly like this (directionally):
- Advertising (the core)
- Brand and performance ads across feeds and communities.
- Increasing contribution from lower‑funnel products such as dynamic product ads and improved conversion tracking, which Reddit says tripled year‑over‑year. [47]
- Data licensing and AI partnerships
- Emerging products
- Tools like Reddit Pro and AI‑powered analytics that help publishers and brands track engagement, sync content feeds and target relevant communities using AI recommendations. [50]
This dual identity — ad platform + AI data utility — is why the stock trades more like a high‑growth software name than a traditional social network.
Valuation: How Expensive Is Reddit Stock?
The honest answer: very, but how very depends on whose numbers you use.
Core Multiples
- MarketBeat’s snapshot around December 2 puts Reddit at:
- Market cap: ~$41.1 billion
- P/E (trailing): ~124.7x
- PEG: ~2.38
- Beta: ~2.17 [51]
- StocksToTrade, using a different methodology (likely forward or adjusted earnings), cites a P/E around 33–34x and a price‑to‑sales ratio near 20.6x, alongside the same very high gross margin (~91%) and debt‑to‑equity of 0.01. [52]
What this tells you:
- On almost any basis, Reddit trades at a premium to mature social platforms (which historically have mid‑single to low‑double‑digit sales multiples).
- Some providers are still normalizing earnings and one‑time items, so trailing GAAP and forward adjusted numbers can produce very different P/E figures.
If you believe Reddit can sustain 30–40%+ revenue growth with 30–40% margins, those multiples can be argued as justifiable. If you think growth will slow quickly or AI licensing proves less lucrative than hoped, the stock can look stretched.
What Are Analysts and Models Forecasting for Reddit?
Despite the volatility, Wall Street’s view of Reddit is broadly constructive — but not universally euphoric.
Street Price Targets (12‑Month Horizon)
Different aggregators show slightly different snapshots because they pull from overlapping but not identical analyst sets:
- MarketBeat:
- StockAnalysis.com:
- Coverage of 25 analysts
- Consensus rating: Buy
- Average target:$219.04, implying a ~1.8% downside versus its real‑time price snapshot
- Same broad range: $75 – $300 [55]
- Benzinga / CoinCodex composite:
- Across 26 analysts, Benzinga calculates a consensus target of $215.62, again not far from today’s price. [56]
- The most recent high‑profile updates include:
TIKR’s Q3 recap similarly cites an average target around $228, reinforcing the picture of a stock that is roughly near “fair value” by consensus, with a wide spread between bears and bulls. [61]
Longer‑Term Algorithmic Forecasts (Handle With Care)
Benzinga’s piece also relays CoinCodex’s algorithmic price projections, which use historical price, volatility and moving averages rather than fundamentals. A summarized version of their average scenario looks like this: [62]
- 2025: ~$191
- 2026: ~$202
- 2027: ~$337
- 2030: ~$481
Bullish and bearish bands are very wide (for example, 2030 bullish near $510, bearish around $452). These are best interpreted as scenario ranges, not precise predictions — and certainly not a substitute for fundamental analysis.
Technicals and Sentiment: Volatility Is the Norm
Reddit’s recent trading history underlines why it has become a favorite ticker for both growth investors and short‑term traders:
- Over the month ending December 2, 2025, the stock traded as low as about $173.56 and as high as $231.37, with a 1‑year range still stretching from $79.75 to $282.95. [63]
- Average daily volume sits around 2.48 million shares, and beta above 2 means Reddit routinely moves more than twice as much as the broader market. [64]
In the last week of November:
- The stock fell about 7–8% on November 26, then rebounded more than 11% pre‑bell and finished the week with a 4–5% gain on November 28 as traders piled into the GDPR narrative. [65]
No surprise, then, that trading commentators frame RDDT as a momentum name:
- StocksToTrade’s notes talk about support zones in the low $200s and resistance near $218–220, with strategies like “buying dips below $200 with tight stop‑losses” for active traders — while emphasizing that this is trading commentary, not investment advice. [66]
Key Opportunities for Reddit Stock
Based on the latest data and commentary as of December 2, 2025, here’s what the bull case tends to focus on:
- High‑growth, high‑margin core business
- Revenue growth near 70% YoY with 40% adjusted EBITDA margins is rare even in tech. [67]
- Under‑monetized user base
- ARPU just above $5 and international expansion in early innings suggest significant upside as Reddit closes the monetization gap with larger social platforms. [68]
- AI licensing as a second growth engine
- Multi‑year deals with Google, OpenAI and others, plus ongoing renegotiations toward usage‑based pricing, could make data licensing a meaningful profit center alongside advertising. [69]
- Moat in authentic, community‑driven content
- AI models and search engines increasingly prize human, conversational data. Reddit’s large, topic‑organized communities are hard to replicate and have already become a preferred training source for several AI platforms. [70]
- Growing institutional sponsorship
- The entrance of large, long‑term investors like Norges Bank and Mackenzie Financial adds credibility to the story and can dampen some of the more speculative extremes. [71]
Key Risks to Watch
The bear case (or at least the cautionary view) typically points to:
- Rich valuation and limited consensus upside
- Depending on the data provider, consensus 12‑month price targets cluster only slightly above or even slightly below current prices, despite RDDT trading at 20x+ sales and very high earnings multiples by some measures. [72]
- Dependence on third‑party platforms and algorithms
- Reddit’s traffic — and its perceived importance in AI — is heavily influenced by Google search changes and AI citation behavior, as shown by the early‑October drawdown when ChatGPT citations dropped. [73]
- Regulatory risk, especially around privacy and data
- The company’s own 10‑K cautions that stricter enforcement of GDPR, UK GDPR and future ePrivacy rules could increase costs, limit ad targeting, complicate cross‑border data flows and expose Reddit to hefty fines. [74]
- Hopes for “GDPR simplification” could prove too optimistic or take years to materialize in practice.
- User growth quality and U.S. saturation
- Q3 numbers show decelerating U.S. logged‑in user growth — from double‑digit rates down to around 7% — even as total global DAUs grow briskly. If high‑value U.S. engagement stalls, monetization upside might be slower than bulls expect. [75]
- Insider selling and future supply
- While insiders still own about a third of the company, recent sales exceeding $80 million in value highlight continuing supply overhang as lockups expire and executive trading plans execute. [76]
- Execution risk in AI negotiations
- Pushing for dynamic, usage‑based licensing is attractive in theory, but large partners like Google and OpenAI have alternatives. If negotiations stall or AI providers shift to other data sources, the high‑margin licensing opportunity could fall short of current hopes. [77]
So, Is Reddit Stock a Buy After December 2, 2025?
From the perspective of Google News/Discover‑style coverage, the picture as of December 2, 2025 looks like this:
- Reddit is no longer just a meme‑era curiosity; it is a profitable, fast‑growing platform with a pivotal role in the AI ecosystem. [78]
- The stock price already reflects much of that promise, trading at premium multiples with consensus price targets only modestly above (or even slightly below) current levels. [79]
- Near‑term moves are likely to remain driven by:
- New data on user growth and ad trends (especially in the U.S.).
- Updates on AI licensing deals and any structural change in GDPR or U.S. privacy rules.
- The ongoing tug‑of‑war between institutional accumulation and insider selling.
For long‑term investors, Reddit today is essentially a bet that:
- It can sustain strong growth and high margins as it scales advertising and data licensing, and
- Regulatory and platform risks (Google, OpenAI, GDPR, etc.) remain manageable, not existential.
For traders, it remains what it has been for most of 2025: a high‑volatility, news‑sensitive name that reacts quickly to AI headlines, regulatory developments and analyst upgrades or downgrades.
Final Note
Nothing in this article is financial advice or a recommendation to buy or sell Reddit stock. It is a synthesis of publicly available news, filings and analyst data as of December 2, 2025. If you’re considering an investment in RDDT, it’s worth:
- Reading Reddit’s latest 10‑K/10‑Q filings in full. [80]
- Comparing Reddit’s valuation and growth profile to other social and ad‑driven platforms.
- Stress‑testing your thesis under less favorable AI and regulatory scenarios.
Reddit may be winning the AI game today — but as both the company and its investors are discovering, the rules of that game can change fast.
References
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