December 15, 2025 — Reddit, Inc. (NYSE: RDDT) is trading near $224 in Monday’s session, modestly lower on the day after a volatile intraday range that underscores how tightly investors are balancing growth momentum against valuation, regulatory risk, and the fast-moving AI landscape. As of 2:47 p.m. ET, RDDT traded at $224.21 (down about 0.25%), after opening at $220.73 and swinging between $213.72 and $226.65.
The stock’s story heading into year-end has become a three-part narrative: (1) accelerating ad monetization powered by AI tools, (2) a growing “data and licensing” angle tied to generative AI, and (3) rising legal and policy scrutiny globally, highlighted by a high-profile Australia court fight that puts “what counts as social media” back in the spotlight. [1]
Reddit stock today: quick market snapshot
By mid-afternoon Monday, Reddit’s market cap stood around $43.0 billion, with intraday volume above 3.1 million shares.
Broader performance context shows why the name remains on growth-watchlists even after pullbacks: MarketBeat data indicates Reddit shares are up about 37% year-to-date, about 30% over the last 12 months, and roughly 16% over the past month (figures can vary by data provider/time of day). [2]
Today’s headlines driving Reddit stock interest on Dec. 15, 2025
Several narratives are converging in today’s RDDT coverage and investor chatter:
- Technical setup back in focus: Investors Business Daily highlighted Reddit’s recent rebound and a cup-with-handle pattern with a new buy point at $240.18, while pointing to sharp recent earnings growth and strong recent revenue expansion. [3]
- Australia legal fight adds policy risk (and visibility): Reddit is pushing back against being labeled an “age-restricted social media platform” in Australia, arguing it functions more like topic-based public forums than traditional social networking. [4]
- Analyst debate remains lively: A notable bullish call from Jefferies—raising a price target to $325—sits alongside more tempered consensus targets depending on the tracker used, reinforcing that RDDT remains a “high-disagreement” stock. [5]
The bull case: AI-driven advertising is showing up in the numbers
Reddit’s core investment thesis in late 2025 is no longer “can Reddit monetize?” but “how big can Reddit’s monetization get—and how defensible is it?”
In its most recent reported quarter (Q3 2025), Reuters reported Reddit’s revenue rose 68% to $585 million, beating expectations, and management pointed to its AI-optimized ad platform as a key driver helping brands place ads inside relevant subreddit conversations. Reuters also cited Reddit’s active advertiser base rising more than 75% in the third quarter. [6]
Just as important for a global ad story, Reuters noted continued investment in features such as machine translation, which by Q3 supported 30 languages—a capability Reddit has framed as foundational to international expansion. [7]
Why advertisers care about Reddit’s “conversation placement” model
Unlike many social platforms built around following people, Reddit’s structure is built around topics and intent. For performance marketers, intent often matters as much as raw reach. Reuters described how Reddit’s tools enable targeted placement directly within relevant threads, aligning with where users are already debating products, categories, and decisions. [8]
That positioning can be powerful if Reddit keeps proving that its ads feel “native” to user intent without degrading the experience—an execution challenge that could decide how durable the upside is.
The AI licensing angle: opportunity—and a new kind of risk
Beyond ads, Reddit’s vast archive of human conversation has become a coveted dataset in the generative AI boom. Reuters reported Reddit has licensing deals with Google and OpenAI, and it has stepped up enforcement actions against what it says is unauthorized scraping. [9]
For investors, this creates a second monetization track:
- Advertising (repeatable, scalable, tied to engagement)
- Data/licensing (potentially high-margin, but more episodic and contract-dependent)
The flip side is that licensing ties Reddit more tightly to the evolving AI ecosystem—and to legal fights about data rights, attribution, and fair use. Reuters coverage in 2025 has repeatedly highlighted this tension as platforms and publishers try to protect proprietary content from being used freely to train models. [10]
The regulatory overhang: Australia lawsuit puts “what is social media?” on trial
A key risk factor moving into 2026 is regulation—especially age, safety, and identity policy.
Reuters reported Reddit filed a lawsuit in Australia’s High Court seeking to overturn (or be exempted from) the country’s under-16 social media ban, arguing the law raises serious issues for privacy and political expression. Reuters also noted the law’s enforcement structure: platforms face penalties up to A$49.5 million for noncompliance, while minors and caregivers do not face punishment, and platforms may use tools such as age inference or selfie-based age estimation to comply. [11]
Business Insider’s reporting emphasized Reddit’s framing in its legal filings: the company argues it operates as subject-based public forums, not a traditional social network built primarily for “online social interaction,” and it highlighted features like pseudonymity and the upvote/downvote system as fundamentally different from friend-based platforms. [12]
The Guardian added that Reddit says it is complying while still seeking review, warning the law could push intrusive verification onto adults and create an “illogical patchwork” of which platforms are included. [13]
Why this matters for RDDT stockholders
Even if Australia is a limited portion of revenue today, a high-profile court fight can matter in three ways:
- Compliance cost and UX friction: verification requirements can increase costs and potentially reduce engagement. [14]
- Precedent risk: other countries may watch outcomes closely as they design their own youth and safety regulations. [15]
- Narrative risk: RDDT’s valuation depends on growth and monetization. Anything that threatens user growth, engagement, or ad targeting can change the market’s willingness to pay up. [16]
Product trust and identity: Reddit testing verified profiles
Another recent development investors are watching is Reddit’s attempt to strengthen trust and authenticity—especially as AI-generated content and impersonation scams spread.
Reuters reported that Reddit began testing verified profiles with a grey checkmark, initially rolling out to a curated group of individuals and businesses. Reuters also said verification is opt-in, does not provide special privileges, and is designed to help with situations where identity matters (such as official brand announcements). [17]
For the stock, verification sits at an interesting intersection:
- It can reduce fraud and impersonation risk (supporting advertiser confidence).
- It can create tension with Reddit’s long-standing culture of pseudonymity if rolled out aggressively.
- Unlike some platforms, Reuters noted Reddit is not positioning verification as paid access or special treatment—at least for now. [18]
Reddit stock forecasts: what Wall Street thinks RDDT is worth
Analyst expectations for Reddit vary meaningfully depending on the data source and cut of the analyst universe, but several themes emerge: a generally positive bias, wide target dispersion, and continuing debate about valuation.
Consensus targets and rating summaries (as of mid-December 2025)
- MarketBeat lists Reddit with a “Moderate Buy” consensus and an average 12‑month price target around $230.28, with targets ranging from $75 on the low end to $325 on the high end. [19]
- Nasdaq (via Fintel) cited an average one-year target of about $247.40 (as of Dec. 6, 2025), with a range from $116.15 to $318.15. [20]
- Benzinga’s tracker shows a consensus price target of $216.58 while also highlighting that the most recent cluster of calls (Jefferies/Citi/JPM) implies materially higher upside when viewed together. [21]
These differences don’t necessarily mean analysts are changing their minds day-to-day; they often reflect which firms are included, how recently targets were updated, and whether older targets remain in the dataset.
Jefferies: a notable high-end bull case into 2026
A widely circulated note cited by TipRanks/TheFly reports Jefferies raised its Reddit price target to $325 from $300 while maintaining a Buy rating, while cautioning that incremental investments and “AI disintermediation” fears could limit multiple expansion across internet stocks. [22]
Translation: even bulls see two simultaneous truths—Reddit may keep growing fast, but investors may not always reward that growth with a higher valuation multiple if margins or competitive threats become the market’s focus.
Reddit stock technical analysis: the $240 level is the line investors are watching
Reddit’s chart has re-entered the technical conversation today, largely due to the stock’s rebound and the proximity to a widely noted resistance zone.
Investors Business Daily reported RDDT has formed a cup-with-handle base with a buy point at $240.18, and also cited an elevated-but-manageable volatility profile (including a 21-day average true range in the mid-single digits). [23]
From a market-structure standpoint, here’s the practical takeaway many traders use:
- A decisive move above a well-followed level can bring in momentum buyers.
- Failure near resistance can also trigger short-term profit-taking, especially in a high-multiple growth name.
Meanwhile, today’s intraday low near $213.72 shows there is still meaningful two-way trading and that sentiment can swing quickly with headlines and macro tape action.
Key risks for Reddit stock in 2026
Even with strong growth, RDDT remains a stock where the bear case has real substance. The biggest areas investors continue to cite include:
1) Valuation vs. peers
Reuters previously highlighted that Reddit has traded at a premium multiple compared with peers such as Pinterest and Snap, reflecting the market’s belief that Reddit can grow faster and monetize better—but also raising the bar for execution. [24]
2) Traffic and platform dependency
Reuters has also discussed volatility tied to Google Search algorithm changes and the emergence of AI-driven search experiences, which can affect how users discover Reddit content from the open web. [25]
3) Regulatory and identity requirements
Australia’s under-16 law and Reddit’s court challenge show how fast policy can reshape user onboarding, anonymity norms, and compliance cost structures. [26]
4) The AI “double-edged sword”
AI can improve ad targeting and unlock licensing revenue, but it also introduces concerns about content scraping, attribution, deepfakes, and whether AI intermediaries reduce the need for users to visit platforms directly. [27]
What to watch next for RDDT stock after Dec. 15, 2025
For investors tracking Reddit stock into year-end and early 2026, the next set of catalysts typically falls into a few buckets:
- Advertising momentum: whether AI-driven ad tools continue to broaden the advertiser base and lift ARPU. [28]
- Signals on AI licensing: any new deals—or legal actions—around data usage and scraping. [29]
- Regulatory timelines: the pace and tone of the Australia legal process, plus any spillover into other jurisdictions considering youth access rules. [30]
- Trust and platform integrity features: how verified profiles evolve and whether they measurably reduce impersonation and misinformation without alienating Reddit’s pseudonymous culture. [31]
- Earnings and guidance: Reddit’s last guidance (per Reuters) pointed to fourth-quarter revenue expectations above Wall Street estimates, so the next report will likely be judged against a high bar. [32]
Bottom line on Reddit (RDDT) stock today
On December 15, 2025, Reddit stock is neither a quiet “set-and-forget” name nor a simple momentum trade. It’s a high-profile growth story at the intersection of digital advertising, AI monetization, and platform regulation—with a chart approaching a widely watched level near $240 and a news cycle that continues to inject both upside narrative and downside risk.
References
1. www.reuters.com, 2. www.marketbeat.com, 3. www.investors.com, 4. www.businessinsider.com, 5. www.tipranks.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.businessinsider.com, 13. www.theguardian.com, 14. www.reuters.com, 15. www.businessinsider.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.marketbeat.com, 20. www.nasdaq.com, 21. www.benzinga.com, 22. www.tipranks.com, 23. www.investors.com, 24. www.reuters.com, 25. www.reuters.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.reuters.com, 31. www.reuters.com, 32. www.reuters.com
