New York, Jan 14, 2026, 15:16 EST — Regular session
- Reddit shares dropped roughly 2.5% in afternoon trading, fluctuating between $246.85 and $259.62
- Filings revealed the CFO and CTO offloaded shares through pre-arranged trading plans
- Evercore kicked off coverage with an Outperform rating, highlighting the potential of ad tools and a strong monetisation runway
Reddit shares dropped roughly 2.5% on Wednesday, erasing some earlier gains following regulatory filings revealing stock sales by two senior executives. The stock traded near $252.52, after fluctuating between $246.85 and $259.62.
The disclosures come at a hectic time for the newly public social media firm, with daily trading sharply reactive to any news related to monetisation—whether ads, new formats, or the worth of its data for AI. Evercore ISI kicked off coverage this week with a bullish stance, saying Reddit has ample opportunity to convert its engagement into revenue. (Investing)
Analyst action is heating up. On Tuesday, Morgan Stanley bumped its price target for Reddit to $265 from $250, maintaining an Overweight rating, The Fly reported. (TipRanks)
Chief Technology Officer Christopher Brian Slowe offloaded 14,000 Class A shares on Jan. 8, according to a Form 4 filing. The sales came in multiple trades, with prices ranging from $249.24 to $259.52. The filing noted these transactions followed a Rule 10b5-1 plan, a pre-set trading schedule insiders use, which was adopted on May 9, 2025. (SEC)
A separate Form 4 revealed that CFO Andrew Vollero offloaded 3,974 Class A shares between Jan. 9 and Jan. 13, at prices ranging from $260.12 to $263.31. The filing noted these sales were executed under a Rule 10b5-1 plan put in place on Sept. 11, 2025. (SEC)
Evercore kicked off coverage on Tuesday with a $320 price target, calling Reddit’s valuation “demanding” yet justifiable thanks to its growth prospects. The firm highlighted improvements in ad tools and efforts to boost revenue per user. (Investing)
“We still see significant opportunity for Reddit to gap up its average revenue per user,” Evercore analyst Mark Mahaney said in a note highlighted by Investor’s Business Daily. (Investors)
Reddit is pushing its ad automation forward. Earlier this month, it rolled out a beta for “Max campaigns,” leveraging AI to fine-tune campaign settings on the fly and deliver unique audience insights. (Reddit Inc)
Wednesday saw a wider risk-off mood hit U.S. equities. Tech stocks dragged the Nasdaq down roughly 1.5%, while the S&P 500 fell about 0.8%, per an Associated Press market report. (AP News)
The near-term tape looks choppy. Insider selling under 10b5-1 plans happens regularly and is often routine, but consecutive disclosures can unsettle sentiment in a stock that’s still fresh to public markets. Reddit flagged “elevated errors” across its site and apps on Tuesday, though it later said the issues were fixed on its status page. (Reddit Status)
Reddit’s next earnings date is still unconfirmed on its investor site, but Zacks has pegged it for Feb. 11. The focus will be on advertising demand, how Max campaigns are performing, and any strides in monetising Reddit’s content archive. (Zacks)
