Reddit (RDDT) Stock Today – December 8, 2025: AI Data Goldmine, r/popular Shake‑Up and What Analysts Expect Next

Reddit, Inc. (NYSE: RDDT) is closing out 2025 with the kind of momentum most newly public tech companies can only dream of. The stock has almost doubled in the past six months, analysts are racing to lift price targets, and Wall Street is suddenly treating Reddit’s 20 years of user‑generated chatter as prime training fuel for artificial intelligence. ^[1]

At the same time, management is ripping out one of the site’s most iconic features — the r/popular feed — and insiders are cashing in shares after a blowout earnings year. That cocktail of rapid growth, product upheaval, AI upside and insider selling makes Reddit one of the most hotly debated media and AI names in the market right now.

This article pulls together the latest news, forecasts and analyses as of December 8, 2025, to help you understand what’s really driving Reddit stock and where Wall Street thinks it goes next.

1. Reddit (RDDT) stock today: price, performance and key metrics

As of midday on December 8, 2025, Reddit shares are trading around $234 on the NYSE, barely changed on the day and roughly flat versus Friday’s close of $234.11. ^[2]

From a “snapshot” perspective:

In other words: Reddit today screens as a fast‑growing, highly profitable but very expensive stock with meaningful short interest and big price swings.

2. The freshest headlines: what’s moved Reddit stock in early December 2025

2.1. Reddit kills r/popular and redraws its front page

Over the past few days, Reddit’s biggest product headline hasn’t been about AI — it’s about the death of r/popular.

CEO Steve Huffman has confirmed that Reddit is removing the long‑standing “r/popular” feed as the default experience for new users, calling it misleading and unrepresentative of Reddit’s true culture. ^[14]

Key points from his comments and coverage:

• r/popular will no longer appear by default on the homepage for new users; over time, it may effectively disappear for anyone who doesn’t explicitly use it. ^[15]
• Huffman argues that r/popular mainly reflects what the most active (and sometimes bot‑like) users upvote, not what’s “truly” popular or welcoming for newcomers. ^[16]
• Reddit will push personalized feeds instead, aiming to get users into smaller, more relevant communities faster.
• As part of broader governance changes, Reddit plans to limit the number of large communities any one person can moderate, starting in 2026, to curb the influence of so‑called “powermods.” ^[17]

Huffman has said Reddit now sees around 116 million daily visitors, and he notes that the stock is up around 44% over the past year — context he’s using to argue that the product and business strategy are working. ^[18]

Investor angle:
Removing r/popular is risky. It could improve new‑user retention and ad targeting if personalization works, but it also risks alienating power‑users who helped build Reddit’s culture in the first place. The change also fits a pattern of Reddit nudging activity into smaller, more controllable spaces (for example, the earlier removal of public chat in favor of private group chats), which may reduce moderation risk and improve ad safety — two things investors care deeply about. ^[19]

2.2. AI data licensing emerges as a core pillar of the bull case

The other major theme in recent coverage: Reddit as an AI data powerhouse.

Several pieces this week and last highlight Reddit’s growing role as a supplier of conversational training data for large AI models:

• Reddit has two flagship data licensing deals with Google and OpenAI, allowing those firms to train AI systems on Reddit content. ^[20]
• An AI‑focused research note from Piper Sandler reiterated an Overweight rating and a $290 price target, projecting that Reddit’s data licensing revenue could reach ~$400 million by 2027, significantly above prior expectations. ^[21]
• Piper frames Reddit as a “strategic asset in the AI landscape”, noting trailing 12‑month revenue growth near 70% and gross margins above 90%. ^[22]
• A separate bullish thesis summarized by Insider Monkey (based on Darius Dark’s Substack) argues that Reddit’s millions of topic‑specific communities represent a uniquely structured and high‑quality dataset for AI, with existing Google/OpenAI deals already generating over $130 million per year and forming a high‑margin recurring revenue stream. ^[23]

Another analysis from Simply Wall St leans heavily on discounted cash flow (DCF) assumptions and projects Reddit’s free cash flow could grow from roughly $500M to nearly $1B by 2026 and about $4.8B by 2035, concluding that the stock trades at roughly a 30% discount to their intrinsic value estimate (~$338 per share). ^[24]

Investor angle:
The AI narrative is now central to the Reddit story:

• Bulls see Reddit as a “must‑have” dataset in an AI world where differentiated, human, conversational content is scarce.
• Bears worry that DCF‑based fair value estimates may be over‑optimistic, especially when current multiples already price in aggressive growth.

2.3. Blowout Q3 results keep the growth story intact

Reddit’s most recent earnings report (Q3 2025, released October 30) remains a key backbone of the rally. ^[25]

Highlights from the company’s official release and subsequent analysis:

• Revenue: $585 million, +68% year‑over‑year, beating analyst estimates of roughly $549 million. ^[26]
• Advertising revenue: $549 million, +74% YoY, driven by more advertisers plus higher spend per advertiser. ^[27]
• Other revenue (including data licensing): $36 million, +7% YoY. ^[28]
• Net income: $163 million (about 28% net margin), sharply higher than a year ago. ^[29]
• Adjusted EBITDA: $236 million, a 40% margin, up more than 13 percentage points year‑on‑year. ^[30]
• Free cash flow: around $183 million in the quarter, with a 31% FCF margin, continuing a strong trend of cash generation. ^[31]
• Users: Daily Active Uniques (DAUq) reached 116 million, up 19–20% YoY, while weekly users hit roughly 444 million, also up around 20%. ^[32]
• ARPU: Global average revenue per user climbed to $5.04, +~41% YoY; international ARPU rose 39% to $1.84. ^[33]

Guidance and consensus expectations are also punchy:

• Reddit guided for Q4 2025 revenue between $655M and $665M, implying ~54–56% YoY growth; Zacks’ consensus is slightly above the top end at ~$668.5M. ^[34]
• For full‑year 2025, consensus revenue is around $2.12B (+~63% YoY) with EPS expected at about $2.35, implying ~171% earnings growth. ^[35]

Investor angle:
Financially, Reddit is now behaving less like an early‑stage social network and more like a scaled, profitable ad platform with SaaS‑like margins, powered by both advertising and data licensing. That fundamental backdrop helps explain why many analysts are comfortable with premium multiples — but it doesn’t remove the risk if growth slows.

2.4. Institutional flows and insider selling

On December 8, new 13F‑related headlines pointed to notable institutional repositioning:

• Jump Financial LLC reduced its Reddit stake by ~65.9% in Q2, selling over 200,000 shares and ending the quarter with ~107,000 shares worth about $16.1M (roughly 0.06% of the company). ^[36]
• XTX Topco Ltd cut its stake by 92.2%, down to just over 2,100 shares worth about $326K. ^[37]
• Other institutional investors — Resona Asset Management, Congress Park, Platinum Investment Management, and SLT Holdings among others — have modestly added to their positions, suggesting a mix of profit‑taking and accumulation across the hedge‑fund community. ^[38]

At the same time, there has been heavy insider selling:

• CEO Steve Huffman sold 18,000 shares on November 28 at an average price of about $215, for proceeds around $3.87M, but still holds roughly 448,600 shares worth close to $100M at current prices. ^[39]
• Earlier in November, Huffman also sold around 18,000 shares at ~$195, generating another ~$3.5M. ^[40]
• MarketBeat estimates that insiders have sold roughly 380,000 shares (~$80M) over the last three months, though insiders still own about 30–34% of the company. ^[41]

Investor angle:
Insider selling after a massive post‑IPO run‑up is not surprising, especially given Reddit’s long private history. But the scale and frequency of sales, combined with some hedge funds trimming stakes, is one of the main bear talking points right now.

2.5. Short interest and trading action

Short sellers have not gone away — if anything, they’ve leaned in:

• As of November 14, 2025, short interest stood at about 18.0 million shares, roughly 14–16% of the public float, with a short‑interest ratio of about 3.2–3.3 days. ^[42]
• FINRA off‑exchange data aggregated by Fintel shows short volume often exceeding 55–65% of daily trading volume in late November and early December. ^[43]

On the technical side:

• StockInvest.us notes Reddit gained 5.1% on Friday, December 5, and is up about 28–29% over the past two weeks, with buy signals from both short‑ and long‑term moving averages. Their system upgraded RDDT to a “Buy candidate” on November 25. ^[44]
• They see near‑term support around $209–203 and resistance near $237 and then the high‑$260s, characterizing the stock as “high risk” given ~5–6% average daily volatility. ^[45]
• TradingView’s technical summary currently shows Reddit with a “Buy” rating on the daily timeframe and “Strong Buy” on the one‑week view, reflecting the strong uptrend. ^[46]

Investor angle:
The combination of high short interest, strong momentum and AI‑driven narrative makes Reddit fertile ground for sharp moves in both directions — something traders need to respect when sizing positions.

3. Fundamentals: growth, margins and balance sheet

Stepping back from the day‑to‑day noise, Reddit’s core fundamentals in 2025 look dramatically different from its pre‑IPO profile.

3.1. Revenue and earnings growth

Over the last three years, Reddit has grown revenue at a compound annual growth rate of ~43–44%, well ahead of the typical consumer‑internet peer. ^[47]

Key 2025 datapoints:

• Q2 2025:
  • Revenue: $500M, +78% YoY
  • Ad revenue: $465M, +84% YoY
  • Net income: $89M (EPS $0.48)
  • DAUs: ~110M, +21% YoY
  • Adjusted EBITDA: $167M (33% margin)
  • Free cash flow: $111M (22% margin) ^[48]
• Q3 2025:
  • Revenue: $585M, +68% YoY
  • Net income: $163M
  • Adjusted EBITDA: $236M (40% margin)
  • Free cash flow: $183M (31% margin) ^[49]

Sell‑side analysts expect this momentum to carry into 2026, with ~42% revenue growth over the next 12 months according to StockStory’s aggregated estimates. ^[50]

3.2. Users, engagement and ARPU

Reddit’s growth is not just financial; user metrics are moving too:

• Domestic daily active visitors have grown ~32% annually over the last two years, reaching 51.6 million in the latest quarter. ^[51]
• Global daily users are running at ~116M, weekly at ~444M, both up around 20% YoY. ^[52]
• ARPU has inflected, with overall ARPU up ~40–41% and international ARPU up ~39% year‑on‑year in Q3. ^[53]

Investors have been watching closely to see whether heavier monetization (more ads, deeper targeting, AI‑driven tools) would hurt engagement; so far, user growth and ARPU have been rising together, which supports the bull case.

3.3. Margins, cash and leverage

Reddit’s economics are notably strong for a social platform:

• Gross margin: Averaging around 90–91%, among the best in consumer internet. ^[54]
• EBITDA margin: Around 40% in Q3, with trailing EBITDA margins in the high‑20s to low‑30s. ^[55]
• Net cash position: About $2.2B of cash vs. ~$25M of debt, giving Reddit a sizable net cash cushion equal to ~5% of its market cap. ^[56]

This mix means Reddit can invest aggressively in product, AI partnerships and global expansion without needing near‑term capital raises, a key de‑risking point for long‑term investors.

4. Wall Street’s latest Reddit (RDDT) stock forecasts

Analyst opinions are broadly positive, but there’s disagreement on just how much upside is left after the recent surge.

4.1. Consensus targets and ratings

Different data providers show slightly different averages:

• MarketBeat:
  • 28 analysts, average 12‑month price target $226.33
  • High: $300, Low: $75
  • Implies roughly 3–4% downside vs. ~$234. ^[57]
• TipRanks:
  • 21 analysts (last 3 months), average target $254
  • High: $303, Low: $174
  • Implies about 8.5% upside from ~$234
  • Consensus rating: “Moderate Buy” (13 buys, 8 holds, 0 sells). ^[58]
• Finviz:
  • Aggregated “Recom” score of ~1.89 (on their 1–5 scale, that’s between Strong Buy and Buy)
  • Average target around $247.12. ^[59]

So depending on which dataset you use, Wall Street sees anywhere from slight downside to moderate upside (~0–10%) over the next year — but almost no consensus that the stock is cheap at today’s price.

4.2. Notable recent analyst moves

Recent rating actions give more color:

• Piper Sandler: Reiterated Overweight with a $290 target, highlighting upside from Reddit’s data licensing business and projecting that segment could hit $400M in revenue by 2027. ^[60]
• Needham: Reiterated Buy and lifted its target to $300 back in September. ^[61]
• Truist: Reiterated Buy with a $270 target, calling Q3 a “strong beat” and praising the company’s growth and profitability trajectory. ^[62]
• Citigroup: Reiterated Buy, raising target from $220 to $250. ^[63]
• Morgan Stanley: Lifted its target to $250, citing improvements in automation and ad formats that should support durable growth. ^[64]
• Jefferies: Maintains Buy with a $300 target, emphasizing strong execution and advertiser adoption. ^[65]
• On the more cautious side, RBC Capital initiated at “Sector Perform” with a target around $125, and Wells Fargo has shifted from Overweight to Equal Weight with a target in the $115–118 range. Redburn Atlantic remains an outlier with a Sell rating and a $75 target. ^[66]

Investor angle:
The spread between the lowest and highest targets ($75–$303) underscores just how path‑dependent the Reddit story is. If AI licensing and ad growth keep compounding at current rates, the more bullish targets don’t look crazy; if growth normalizes faster than expected, the low‑end targets suddenly look prescient.

5. Is Reddit stock overvalued or still undervalued? Conflicting models

Valuation is where the debate gets fiercest.

5.1. Multiples say “expensive”

On simple multiples, Reddit undeniably looks pricey:

• Trailing P/E ~129x, forward P/E around 60x. ^[67]
• Trailing Price/Sales ~23x; Zacks’ forward 12‑month P/S estimate around 14.4x, more than double the broader tech sector. ^[68]
• EV/EBITDA ~150x and P/FCF ~87x on trailing numbers. ^[69]

A recent Zacks article (via Nasdaq) classifies Reddit as overvalued on a value‑style basis (Value Score “F”), even while rating it a Zacks Rank #1 (Strong Buy) on growth and momentum factors. ^[70]

5.2. DCF models say “discounted”

By contrast, discounted cash flow models tell a different story:

• Simply Wall St’s two‑stage free cash flow to equity model suggests a fair value near $338 per share, implying roughly 31% upside from current levels. ^[71]
• A Yahoo Finance piece (drawing on similar logic) asks whether Reddit is trading at a ~31% discount to intrinsic value, reinforcing this DCF‑driven undervaluation view. ^[72]

Even Simply Wall St, however, notes that Reddit only passes 2 of their 6 valuation checks, flagging that while cash‑flow‑based metrics look attractive, earnings‑ and multiple‑based measures look stretched, with an actual P/E far above what they consider a fair ratio. ^[73]

5.3. The AI‑era “data asset” argument

The Insider Monkey / Darius Dark bull thesis goes further, arguing that:

• Reddit’s licensed dataset of authentic human conversation is hard to replicate at scale.
• Existing data deals with Google and OpenAI, already estimated at >$130M per year, are just the opening bid in what could become a deep, recurring, high‑margin revenue stream. ^[74]
• As AI models rely more on high‑quality, context‑rich user content, Reddit could end up functioning as critical infrastructure for AI training, not just another ad‑supported social network. ^[75]

Investor angle:
If you believe the AI data thesis and long‑term FCF projections, Reddit looks cheap relative to its perceived strategic value. If you’re skeptical of long‑dated forecasts and prefer near‑term multiples, Reddit looks expensive and vulnerable to any slowdown.

6. Key risks and questions for 2026

Even the most bullish analyses acknowledge material risks:

1. Execution risk on AI and ads
   • Data licensing revenue is still a small fraction of total sales today; much of the bullish narrative assumes this segment scales smoothly to hundreds of millions of dollars. ^[76]
2. User backlash and community trust
   • Changes like the removal of r/popular and more aggressive monetization can alienate long‑time users, especially if they feel Reddit is optimizing for ads over authentic conversation — a theme already surfacing in community discussions. ^[77]
3. Regulatory and content‑moderation pressure
   • As Reddit becomes more important to AI and news discovery, it is likely to attract greater scrutiny around misinformation, moderation, and the use of user content for training models.
4. Valuation compression
   • With P/E and P/S ratios at many multiples of sector averages, Reddit is exposed to multiple compression if growth slows, AI hype cools, or macro conditions change.
5. High beta and short interest
   • A beta above 2 and double‑digit short interest means Reddit can experience very sharp moves in both directions around earnings, news, or macro events. ^[78]

7. Bottom line: how to read Reddit stock on December 8, 2025

Putting it all together:

• The bull case rests on explosive revenue growth, elite margins, a fortress balance sheet, and unique AI data assets, plus an ad business that’s compounding faster than many peers. Q2 and Q3 results, along with AI licensing commentary from Piper Sandler and others, strongly support that narrative. ^[79]
• The bear case focuses on lofty valuation multiples, heavy insider selling, elevated short interest, and product/community risks as Reddit tweaks its core experience and pushes monetization harder. ^[80]
• Wall Street overall leans positive — with most analysts at Buy or Overweight — but consensus price targets now point to modest, not explosive, upside over the next 12 months, unless AI‑related cash flows materialize faster than expected. ^[81]

For investors and traders following RDDT into 2026, the key questions are:

1. Can Reddit sustain 50–60%+ revenue growth while keeping user growth and engagement healthy?
2. Will AI data licensing grow into a multi‑hundred‑million‑dollar, high‑margin engine — or remain a nice but secondary revenue stream?
3. How will the community react over time to changes like the removal of r/popular and tighter moderation policies?
4. And, crucially, how much of that optimistic scenario is already priced in at ~130x trailing earnings?

Important: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always do your own research and consider speaking with a qualified financial advisor before making investment decisions.

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