New York, Jan 9, 2026, 13:16 ET — Regular session
Reddit, Inc shares fell 5.8% to $239.12 in afternoon trading on Friday, reversing an early push above $260.
The move matters because Reddit stock has been priced like a fast grower, and fresh coverage is starting to draw harder lines around what that growth is worth. With results for the holiday quarter still ahead, even a “nothing’s broken” call can jolt a name trading at a premium.
U.S. stocks were higher after a softer December jobs report, leaving Reddit as an outlier on the tape. The Nasdaq Composite was up about 0.7% around midday, while ad-heavy peers were mixed.
Cantor Fitzgerald initiated coverage on Reddit with a Neutral rating and a $240 price target. Analyst Deepak Mathivanan said Reddit’s “differentiated” user proposition and content still leave room for better monetisation, but he argued the stock’s valuation already bakes in a bullish case and he wants a “compelling entry point.” 1
A filing showed Chief Financial Officer Andrew Vollero sold 8,913 Class A shares on Jan. 6 and Jan. 7 at weighted average prices between about $250 and $260. The Form 4 flagged the trades as part of a Rule 10b5-1 plan — a pre-set trading program companies use to let insiders buy or sell on a schedule. 2
Reddit’s last earnings update in late October lifted the stock after it forecast fourth-quarter revenue above Wall Street estimates, pointing to demand for its AI-powered ad tools. The company also flagged a slowdown in U.S. daily active unique visitor growth in that report. 3
But investors are still working out how steady Reddit’s user and ad trends will look once the easy comparisons fade, and the stock’s swings cut both ways. A stumble in engagement, ad pricing or guidance can hit harder when the multiple is high.
The next clear catalyst is Reddit’s next earnings report, which has not been scheduled publicly; Zacks expects the company to report around Feb. 11. Traders will be watching user growth, ad momentum and any update on newer revenue lines such as data licensing. 4
