Reddit, Inc. (NYSE: RDDT) is back in the spotlight on December 24, 2025, after fresh Wall Street commentary and newly surfaced insider-trading disclosures helped reset the conversation around what’s next for the social platform’s stock heading into 2026.
As of the latest available quote on Dec. 24, RDDT was indicated around $225.82, down about 3.17% versus the previous close, with a market capitalization near $43.0 billion.
What’s driving the renewed attention isn’t a single headline product launch or earnings release. Instead, it’s a combination of bullish analyst conviction—most notably Needham’s “Top Pick for 2026” call—and a Form 4 filing showing Reddit’s COO selling shares after exercising options.
Below is a detailed roundup of the news, forecasts, and key analyses shaping Reddit stock as of Dec. 24, 2025.
The headline catalyst: Needham names Reddit its “Top Pick” for 2026
A major theme in today’s RDDT coverage is Needham & Company’s decision to designate Reddit as its top stock pick for 2026, while reiterating a Buy rating and a $300 price target. [1]
The bullish thesis centers on two engines that analysts believe can keep compounding:
- Advertising momentum tied to Reddit’s community structure (high-intent interest clusters and lower perceived “ad clutter”).
- Monetization of Reddit’s human-generated content—including licensing arrangements used in AI model training, which some coverage says is already producing more than $100 million annually from major AI players. [2]
Needham’s Laura Martin also laid out forward-looking operating expectations frequently repeated across today’s reporting, including:
- 2026 revenue of about $2.95 billion (roughly +38% year over year)
- 2026 adjusted EBITDA around $1.7 billion [3]
In other words, the Needham framing is: Reddit isn’t just “a social media app”—it’s an ad platform plus a data asset, and the market may still be underestimating how far that combination can scale.
Why some analysts think Reddit can re-accelerate into 2026
Several Dec. 24 write-ups argue that Reddit’s longer-term setup remains attractive even after a massive post-IPO run. One Barron’s analysis notes Reddit shares have surged dramatically since their market debut, and points to continued bullishness from multiple firms with high price targets. [4]
Key bullish arguments highlighted in today’s coverage include:
1) User engagement is strong—monetization is the gap
One line of thinking is that Reddit’s engagement metrics compare favorably to other social platforms, while revenue per user still has room to expand. That “gap” is what bullish analysts see as upside, especially if ad tooling keeps improving. [5]
2) Product and ad-tech improvements are becoming more visible
Barron’s points to product features such as Reddit Answers and broader “full-funnel” ad offerings as part of the narrative that Reddit is evolving from experimental ad placements into a more complete advertising machine. [6]
3) AI licensing is a second monetization lane
The same coverage emphasizes that Reddit’s conversational content is uniquely valuable for training AI systems, and that licensing deals (and/or enforcement against unauthorized use) could expand that revenue stream over time. [7]
The other big story: Reddit COO Jennifer Wong’s Form 4 (insider sale + option exercise)
Alongside analyst optimism, today’s news cycle also includes a sentiment check from insider activity.
A Form 4 filing for Reddit COO Jennifer L. Wong was filed with the SEC on Dec. 23, 2025, covering transactions dated Dec. 19, 2025. [8]
What the Form 4 shows
According to the filing:
- Wong exercised stock options for 39,167 shares at an exercise price of $5.35. [9]
- She then sold shares in multiple transactions totaling 39,167 shares, with reported weighted-average sale prices ranging from roughly $231.62 to $238.57 across different lots. [10]
- The filing’s footnotes state the sales were conducted under a Rule 10b5-1 trading plan adopted on May 16, 2025 (a pre-scheduled plan that can reduce the appearance of trading on inside information). [11]
Media summaries circulating today also highlighted the sale’s approximate dollar value (about $9.18 million) and emphasized that the trades were reported via the SEC Form 4 process. [12]
How markets typically interpret this
Insider sales can spook investors when they look discretionary or clustered. But context matters:
- Option exercise + sell-to-cover (or sell-after-exercise) is common, especially after large price moves.
- A 10b5-1 plan often signals the transactions were planned in advance.
- Still, insider selling can be a short-term overhang for sentiment—particularly when the stock already has heavy scrutiny around valuation.
Where Reddit stock has been trading: range-bound since late summer
Even with bullish analyst notes, multiple outlets point out a key technical and psychological backdrop: RDDT has been stuck in a range for months.
Barron’s notes Reddit shares peaked around $270.71 in September 2025, and have been “stuck” since August despite finishing 2025 up sharply year-to-date. [13]
Separately, technical-focused coverage from Investor’s Business Daily has pointed to chart levels traders are watching, including a commonly referenced buy point around 240.18 in a cup-with-handle formation—suggesting that, for momentum investors, a convincing move above that region may matter as much as the fundamental narrative. [14]
Analyst forecasts and price targets: a wide range, but “Buy”-leaning consensus
As of Dec. 24, there’s no single universally accepted “street target” because different aggregators update at different times and use slightly different universes of analysts. The pattern, however, is consistent: the range is wide, and the average implies a stock that’s closer to fairly valued than wildly undervalued—unless you believe the bull case.
Here are several widely cited snapshots:
- MarketBeat: average target about $230.28, with a high around $325 and a low around $75. [15]
- StockAnalysis: average target about $220.04, high $325, low $75. [16]
- Investing.com (consensus estimates page): average target around $243.23, high $325, low $115 (as displayed there). [17]
- Zacks: average target around $241.54, with forecasts ranging $115 to $325. [18]
And on the bullish end of named calls:
- Needham: $300 price target, “Top Pick” framing into 2026. [19]
- Jefferies: a $325 price target has been highlighted in multiple recent reports and summaries. [20]
What this means in practice: If you trust the consensus average, Reddit may look closer to “priced for solid growth.” If you trust the bull analysts, the stock’s value depends on whether Reddit can keep compounding revenue and margins while expanding AI licensing economics.
Fundamentals recap: what Reddit last reported that underpins today’s optimism
The day-to-day stock debate is built on the most recent quarterly performance. In Reddit’s third quarter 2025 results, the company reported:
- Daily Active Uniques (DAUq): 116.0 million, up 19% year over year
- Revenue: $585 million, up 68% year over year
- Net income: $163 million (with diluted EPS of $0.80)
- Adjusted EBITDA: $236 million
- Gross margin: 91.0% [21]
Those numbers help explain why analysts are willing to pay attention even when the stock chops sideways: the financial profile has increasingly looked like a scaled platform business rather than a perpetually unprofitable social network.
Short interest: still elevated, adding fuel to volatility
Another notable ingredient in the RDDT setup is positioning.
Barron’s mentions short interest remaining high (over 14%). [22]
Third-party trackers similarly show a short float in the mid-teens based on late-November reporting windows, though exact figures vary by source and timing. [23]
High short interest doesn’t predict direction by itself, but it does tend to:
- amplify volatility around earnings and major analyst notes
- create the possibility of sharp rallies if positive catalysts force short covering
- keep skepticism “in the room,” even during bullish cycles
The bull vs. bear debate heading into 2026
Today’s coverage effectively sets up a clean debate.
The bull case (what optimists are betting on)
- Advertising share gains as Reddit continues improving measurement, performance, and full-funnel tooling. [24]
- AI licensing scaling beyond today’s reported level, with enforcement (and/or new deals) potentially increasing the value of Reddit’s data moat. [25]
- Operating leverage: if revenue growth holds, margins can expand quickly in platform businesses.
The bear case (what skeptics worry about)
- Valuation risk: when a stock is priced for rapid growth, any slowdown can hit hard.
- User growth and traffic quality: social platforms are vulnerable to shifts in discovery and external traffic sources; if engagement stalls, ad pricing power can soften.
- Legal and regulatory uncertainty: content, privacy, and AI data rights are live issues across the sector.
- Insider selling optics, even when conducted under a 10b5-1 plan, can weigh on sentiment. [26]
What to watch next for Reddit (RDDT)
As the calendar turns toward 2026, investors following Reddit stock closely are likely to focus on a short list of catalysts:
- Next earnings and guidance: revenue growth rate, ad pricing, and margin trajectory will be key.
- AI licensing updates: new partnerships, renewals, or legal developments that clarify how durable and scalable this revenue stream is.
- Ad product execution: progress in full-funnel offerings and tools that help brands measure ROI.
- User growth and engagement: whether Reddit keeps expanding DAUq and deepening engagement across core markets.
Bottom line on Dec. 24, 2025
Reddit stock’s Dec. 24 narrative is being shaped by strong renewed analyst conviction—especially Needham’s “Top Pick for 2026” stance—while the market also digests a Form 4 insider sale that appears tied to an option exercise and executed under a pre-arranged trading plan. [27]
For investors, the big question isn’t whether Reddit is “important” on the internet. It’s whether Reddit can keep translating its cultural gravity into durable ad cash flows and defensible AI-era licensing economics—at a pace fast enough to justify the stock’s expectations.
References
1. www.barrons.com, 2. www.barrons.com, 3. www.investors.com, 4. www.barrons.com, 5. www.barrons.com, 6. www.barrons.com, 7. www.barrons.com, 8. www.sec.gov, 9. www.sec.gov, 10. www.sec.gov, 11. www.sec.gov, 12. za.investing.com, 13. www.barrons.com, 14. www.investors.com, 15. www.marketbeat.com, 16. stockanalysis.com, 17. www.investing.com, 18. www.zacks.com, 19. www.barrons.com, 20. www.investors.com, 21. investor.redditinc.com, 22. www.barrons.com, 23. finviz.com, 24. www.barrons.com, 25. www.barrons.com, 26. www.sec.gov, 27. www.barrons.com
