Reddit, Inc. (NYSE: RDDT) is closing out 2025 in the spotlight after a powerful rally earlier this year—and a fresh wave of weekend reading for investors is now shaping the conversation heading into 2026.
Because December 20, 2025 falls on a weekend, the most recent full-session pricing investors are reacting to is Friday’s close (Dec. 19, 2025). Reddit shares last traded around $233, with a market capitalization near $43 billion.
What’s new since Dec. 20 isn’t a single blockbuster headline. Instead, it’s a cluster of institutional ownership updates, insider-selling disclosures, and fresh forecast roundups that together answer the key question for anyone following Reddit stock:
After a huge run and rapid revenue growth, is RDDT priced for perfection—or is there still room to run in 2026?
RDDT stock price check: where Reddit shares stand heading into the last stretch of 2025
Reddit stock finished the latest trading session around $233 (Dec. 19 close), after a year marked by big swings and high volatility. [1]
Several market data summaries put Reddit’s 52-week range roughly between $79.75 and $282.95, underscoring how quickly sentiment has shifted during 2025. [2]
That wide range matters for 2026 positioning because Reddit is still a relatively new public-company story—one where investors continue to debate how much of the upside is already priced in.
What’s new since Dec. 20, 2025: institutional filings put RDDT back on radars
One of the most notable “weekend headlines” around RDDT is a set of SEC-linked ownership disclosures that highlight how funds have been actively resizing positions.
Focus Financial Network trims Reddit position
A MarketBeat report dated December 20, 2025 said Focus Financial Network Inc. cut its Reddit stake by 47.4% during Q3, selling 20,674 shares and retaining 22,965 shares valued at about $5.28 million at quarter-end. [3]
The same report also points out that multiple funds have been adjusting their positions in recent quarters—an important reminder that institutional ownership in Reddit is still evolving as the company matures as a public name. [4]
Voya disclosure highlights smaller adds (and re-circulates the analyst debate)
Another MarketBeat item dated December 20, 2025 focused on Voya Investment Management and also listed examples of smaller institutions increasing holdings (including additions by Platinum Investment Management and Northwestern Mutual Wealth Management). [5]
These are not “price-moving” trades by themselves—but they add up to a narrative: RDDT remains an active battleground stock into year-end, with both trimming and accumulation showing up in public disclosures.
Perpetual Ltd also reported as a seller
A separate MarketBeat filing report dated December 20, 2025 flagged Perpetual Ltd as having sold 178,569 shares of Reddit. [6]
Taken together, these Dec. 20 updates don’t say “institutions are fleeing” or “institutions are piling in.” They say something more nuanced (and arguably more important for a high-volatility growth stock): positioning is still being actively recalibrated.
Insider selling: the filings investors are discussing heading into 2026
Alongside institutional updates, recent Form 4 filings have kept insider activity in focus—especially because the sales are large enough to draw attention, even if they were planned.
Chief Legal Officer Benjamin Seong Lee: planned sales + option exercises
A Refinitiv/Washington Service summary published via TradingView reported that Lee Benjamin Seong filed a Form 4 on Dec. 18, 2025, showing:
- Option exercise: 68,750 shares at $7.92
- Planned sale:73,755 shares at about $225.99
- Ending holdings:62,608 shares (direct) [7]
MarketBeat coverage also highlighted Lee’s insider transactions, including sales at $240.00 (Dec. 18) and the remaining share count. [8]
CEO Steve Huffman: sale tied to a 10b5-1 plan
A separate Refinitiv/Washington Service item reported that CEO Steve Ladd Huffman filed a Form 4 on Dec. 17, 2025, showing:
- Option exercise: 18,000 shares at $25.29
- Planned sale: 18,000 shares at about $220.28
- Ending holdings listed as 448,576 (indirect) [9]
The underlying filing details (via WhaleWisdom) state the sale was conducted under a Rule 10b5-1 trading plan adopted May 19, 2025, and the filing provides ranges for the sale prices across multiple trades. [10]
Why insider selling matters (and what it doesn’t prove)
Insider sales can raise questions—especially when they are frequent or sizable—because they introduce the perception that executives are “cashing in” near highs. But they can also reflect planned diversification and tax/compensation mechanics, particularly when tied to 10b5-1 plans.
One MarketBeat summary item says that, over the last three months, insiders have sold hundreds of thousands of shares worth over $100 million, and it also reports a high insider ownership percentage. [11]
For investors, the practical takeaway isn’t “insider selling is always bearish.” It’s: watch whether selling accelerates, whether it clusters around major catalysts, and whether it diverges from fundamentals.
Analyst forecasts for Reddit stock: targets cluster near the current price, but the range is huge
One reason RDDT continues to trend is that Wall Street’s targets point in different directions depending on the source and snapshot date.
MarketBeat: average target roughly matches today’s price
MarketBeat’s forecast page (and its Dec. 20 writeups) show an average 12-month target around $230.28, with a high target of $325 and a low target as low as $75. [12]
That average target implies Reddit is trading around where the consensus says it should be—yet the spread between the bull and bear case is dramatic, reinforcing how divided forecasts remain.
Ticker Nerd: “Buy”-leaning consensus with median target above $240
Another forecast aggregator, Ticker Nerd, reports:
- Median target around $247.50
- Range roughly $115 to $325
- Ratings skewing toward Buy (with Hold and a small Sell minority) [13]
StockAnalysis: average target below the market, high target still $325
StockAnalysis’ Reddit forecast page lists an average target around $220.18 with a high target of $325 (and a significantly lower low target). [14]
A note on algorithmic forecasts
Some sites publish algorithmic or technical-indicator forecasts. For example, CoinCodex shows a short-term model forecast that projects a move to around $192.59 by mid-January 2026, even while labeling near-term sentiment “Bullish.” [15]
These model-based forecasts can be interesting as sentiment snapshots, but they are not the same thing as sell-side analyst research—so they’re best treated as supplemental, not decisive.
The core 2026 debate: can Reddit keep growing users and monetizing like a top-tier ad platform?
The bullish case for Reddit stock has increasingly centered on a simple idea:
Reddit is becoming a major digital advertising platform—powered by unique communities and strengthened by AI ad tooling—while also turning its content corpus into a valuable asset in the AI era.
Reuters: AI ad tools and a stronger revenue outlook
In its Q3 coverage, Reuters reported that Reddit forecast fourth-quarter revenue above Wall Street expectations, pointing to AI-driven advertising tools helping attract marketing spend. Reuters also described how Reddit’s ad platform places targeted ads within relevant discussion threads (“subreddits”) and cited comments that the active advertiser base rose strongly in Q3. [16]
Reuters also reported key Q3/Q4 figures and trends, including:
- Q3 revenue up 68% (to roughly $585 million)
- Global daily active unique visitors up 19% to 116 million
- Average revenue per user up 41%
- Q4 revenue guidance of $655M–$665M and adjusted EBITDA guidance of $275M–$285M [17]
But Reuters also noted a tension investors still watch closely: U.S. DAU growth decelerated, even as global DAUs rose. [18]
The AI data licensing angle (and why IP protection matters)
Reuters also reported that Reddit has licensing deals with Google and OpenAI, and that Reddit has pursued litigation aimed at stopping allegedly unauthorized scraping—framing content protection as strategically important in the AI era. [19]
This is one reason Reddit stock often trades like a hybrid of:
- an ad-tech growth story, and
- a data/IP story in an LLM-driven web.
Fresh analyst-style narratives: “user momentum into 2026” and the $240 level traders are watching
Even though the biggest fundamental update was back at earnings, the week’s read-through has focused on user growth momentum and technical levels.
An Investors.com report earlier in the week cited Piper Sandler commentary pointing to estimated growth in monthly active users and reiterated a bullish stance, while also highlighting Jefferies lifting its target to $325 and noting that traders have been watching a $240.18 buy-point level. [20]
That same report also captures a key risk debate that likely won’t go away in 2026: how AI-generated answers in search could change traffic dynamics for sites like Reddit. [21]
Risks that still matter for RDDT stock in 2026
For all the optimism around ads and AI, Reddit’s bear case remains clear—and markets have punished the stock before when engagement metrics disappointed.
Reuters previously reported that Reddit has faced traffic headwinds tied to changes in Google’s search algorithm, illustrating the vulnerability many consumer-internet platforms have to external discovery channels. [22]
And the stock’s valuation profile (including elevated earnings multiples reported across data providers) means that even small surprises—on users, ad pricing, or guidance—can drive sharp moves. [23]
A near-term catalyst checklist for Reddit stock watchers
Going into the final days of 2025 and early 2026, here’s what investors most commonly track for Reddit:
- Next earnings and guidance updates (especially revenue growth and profitability trajectory) [24]
- User and engagement metrics (especially U.S. vs. international trends) [25]
- Ad product execution and ROI improvements that convince brands to shift budget [26]
- AI/IP developments (licensing, enforcement against scraping, and product strategy) [27]
- Insider selling pace and whether planned sales remain orderly [28]
- Institutional ownership reshuffling through new filings and position changes [29]
Bottom line: Reddit stock heads into 2026 with momentum—but the forecasts say the easy part may be over
As of the Dec. 20 weekend, the most “current” RDDT narrative is built from three threads:
- Ownership disclosures show institutions actively resizing positions rather than moving in one direction. [30]
- Insider transaction filings are keeping a lid on sentiment for some investors, even as many sales appear structured under 10b5-1 plans. [31]
- Analyst targets cluster near today’s price on average, but the high-end targets (up to ~$325) and bullish growth narratives keep the upside case alive—especially if Reddit sustains ad growth and user momentum. [32]
References
1. www.marketbeat.com, 2. www.marketbeat.com, 3. www.marketbeat.com, 4. www.marketbeat.com, 5. www.marketbeat.com, 6. www.marketbeat.com, 7. www.tradingview.com, 8. www.marketbeat.com, 9. www.tradingview.com, 10. whalewisdom.com, 11. www.marketbeat.com, 12. www.marketbeat.com, 13. tickernerd.com, 14. stockanalysis.com, 15. coincodex.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.investors.com, 21. www.investors.com, 22. www.reuters.com, 23. www.marketbeat.com, 24. www.reuters.com, 25. www.reuters.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.tradingview.com, 29. www.marketbeat.com, 30. www.marketbeat.com, 31. www.tradingview.com, 32. www.marketbeat.com
