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.” (Investing)
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. (SEC)
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. (Reuters)
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. (Zacks)
