As Wall Street prepares for Monday’s session on December 8, 2025, Reddit, Inc. (NYSE: RDDT) heads into the week as one of the most closely watched high‑growth, AI‑linked social media names.
The stock has rallied sharply since its 2024 IPO, powered by 68% revenue growth, surging ad demand, and expanding AI data‑licensing deals, but it now trades at a rich valuation and is attracting both heavy institutional buying and notable insider selling. [1]
Below is a comprehensive look at all the major news, forecasts, and analyses available as of December 7, 2025 that matter for traders and investors before Monday’s opening bell.
1. Price Snapshot: How Reddit Stock Looks Heading Into Monday
At the close on Friday, December 5, 2025, Reddit shares finished at:
- $234.11 (+5.10% on the day)
- After‑hours price: $232.70 (–0.60%) [2]
- Market cap: about $44.4 billion [3]
- 52‑week range: $79.75 – $282.95 [4]
Momentum has been strong:
- Last week: +11.93%
- Last month: +24.67%
- Last year: +50.48% [5]
Volatility is elevated:
- Daily volatility: ~6.6%
- Beta: ~2.2 vs the broader market [6]
Valuation metrics (trailing and forward):
- TTM revenue: ~$1.90 billion
- TTM net income: ~$349 million
- TTM EPS: 1.78
- Trailing P/E: ~131x
- Forward P/E: ~70x (based on Street estimates) [7]
Takeaway: Reddit enters Monday as a high‑growth, high‑volatility, richly valued name that has already delivered large gains into year‑end.
2. Fresh on December 7: Big Institutions Buying, Insiders Selling
Institutional flows: Northwestern Mutual and Amundi load up
Two new December 7, 2025 13F‑based articles highlight meaningful institutional accumulation:
- Northwestern Mutual Wealth Management Co. boosted its Reddit position by 531% in Q2, buying 7,026 shares and ending the quarter with 8,349 shares worth roughly $1.26 million. [8]
- Amundi, a major European asset manager, increased its stake by 2,060% to 1,307,231 shares, about 0.7% of the company, valued near $208 million. [9]
Smaller wealth managers and RIAs have also been adding modest positions, signaling growing institutional acceptance of Reddit as a core growth holding. [10]
Insider activity: executives take profits
At the same time, insiders have been sizable net sellers:
- CEO Steve Huffman sold 18,000 shares in recent months.
- CTO Christopher Slowe sold 24,000 shares.
- In total, insiders disposed of about 394,370 shares worth ~$83.2 million over the past quarter,
- Yet insiders still own about 34.25% of the company. [11]
Interpretation before Monday:
- Bullish: Large, long‑term institutions are building positions in size.
- Cautionary: Insider selling at elevated prices signals management is de‑risking some exposure after a big rally, even while retaining substantial stakes.
3. Fundamentals Update: Q3 2025 Results and Q4 Guidance
Reddit’s Q3 2025 (quarter ended September 30, 2025) was one of the most important catalysts behind the recent surge.
Explosive Q3 growth
From the official earnings release:
- Revenue:$585 million, up 68% year‑over‑year.
- Gross margin:91%, up about 90 bps YoY.
- Net income:$163 million, with ~28% net margin.
- Diluted EPS:$0.80, vs $0.16 a year ago.
- Adjusted EBITDA:$236 million, 40% margin.
- Operating cash flow:$185 million; Free cash flow: $183 million. [12]
User and monetization metrics:
- Daily Active Uniques (DAUq):116 million, +19% YoY.
- Weekly Active Uniques (WAUq):~444 million , +21% YoY. [13]
- Global ARPU:$5.04, up 41% YoY.
- U.S. ARPU:$9.04, up 54% YoY.
- International ARPU:$1.84, up 39% YoY. [14]
AI‑driven ads and data licensing
Reuters notes that Reddit’s AI‑optimized ad tools now place targeted ads directly into relevant subreddit threads, drawing increased marketing spend and pushing Q3 revenue and Q4 guidance above Wall Street estimates. [15]
Key points from Reuters’ coverage:
- Q4 revenue outlook above consensus, thanks to AI‑driven ad performance.
- Active advertiser base expanded >75% YoY.
- Reddit is in licensing deals with Google and OpenAI, while suing Perplexity AI and others over allegedly illegal scraping to protect its data. [16]
Q4 2025 guidance
Management’s own guidance for Q4 2025:
- Revenue:$655–$665 million.
- Adjusted EBITDA:$275–$285 million. [17]
Zacks’ analysis (via Nasdaq) highlights that:
- The Street’s revenue consensus for Q4 is slightly higher at ~$668.5 million, implying ~56% YoY growth.
- Q4 EPS consensus is $0.97, up ~169% YoY.
- Full‑year 2025 revenue estimate:$2.12 billion (+63% YoY).
- Full‑year 2025 EPS estimate:$2.35 (+171% YoY). [18]
Fundamental takeaway: Reddit is transitioning from a story stock to a fast‑growing, increasingly profitable platform with strong operating leverage and a rapidly scaling ad business.
4. Wall Street View: Ratings, Targets and Valuation Debate
Consensus ratings
Different data providers show slightly different snapshots, but all broadly agree Reddit is a growth name with generally positive analyst sentiment:
- MarketBeat:
- 28 covering firms: 2 Sell, 9 Hold, 14 Buy, 3 Strong Buy.
- Overall rating: “Moderate Buy”.
- Average 12‑month price target:$226.33 (a bit below today’s price). [19]
- StockAnalysis:
- 25 analysts: consensus “Buy”, with an average target of $219.04, suggesting ~6% downside vs $234.11. [20]
- TradingView analyst compilation:
- Max target $303, min $115; overall analyst rating “Neutral” in their visual gauge. [21]
Recent notable target moves cited by MarketBeat include:
- Oppenheimer: target lifted to $300 with an “outperform” rating.
- B. Riley:$245 price target, “buy”.
- Bank of America:$210 target, “neutral”.
- Roth Capital:$210 target. [22]
Some Seeking Alpha contributors, aggregated by StockAnalysis, even rate Reddit a “Strong Buy” with a $250 price target, arguing that strong execution and margin expansion justify a premium multiple. [23]
Zacks: growth darling but “overvalued”
Zacks currently assigns Reddit:
- Zacks Rank #1 (Strong Buy).
- Growth Score: A, reflecting powerful revenue and earnings momentum.
- But a Value Score of F, pointing to a premium valuation. [24]
According to Zacks’ valuation work:
- Reddit trades around 14.4× forward 12‑month Price/Sales,
- Compared with a sector average of ~6.7× for the broader Computer & Technology group. [25]
Analyst verdict heading into Monday:
- Street is broadly bullish on Reddit’s business, but increasingly split on what you should pay for it after the stock’s near‑doubling over six months. [26]
5. Technical Picture: Strong Uptrend, Potentially Extended
Minervini “trend template” approval
A December 6 report from ChartMill applies Mark Minervini’s SEPA trend template to Reddit and finds that the stock checks most of the boxes for a high‑momentum leader: [27]
- Price is above the rising 50‑, 150‑, and 200‑day SMAs, with the moving averages stacked in bullish order (50 > 150 > 200).
- Shares are within 25% of the 52‑week high ($282.95) and comfortably more than 30% above the 52‑week low.
- Reddit’s relative strength score (CRS) around 85 means it’s outperforming roughly 85% of the market.
On fundamentals, ChartMill highlights that:
- EPS growth has been in the triple‑digit percentage range in recent quarters,
- Revenue growth has consistently run above 60% YoY,
- Net margin has jumped from single digits to nearly 28%, indicating a shift from pure growth to profitable growth. [28]
ChartMill assigns Reddit:
- Technical Rating: 7/10 (healthy uptrend).
- Setup Quality: 3/10 (short‑term extended and potentially volatile). [29]
TradingView: strong buy technicals, neutral analyst bar
TradingView’s composite dashboard shows: [30]
- Technical rating: “Strong Buy” on the daily timeframe; “Buy” over one‑month horizon.
- Analyst bar: plotted closer to “Neutral,” reflecting the mixed target picture.
Technical takeaway:
- Reddit remains a momentum leader in a bullish phase,
- But multiple screeners warn it may be overstretched in the very short term, increasing the risk of sharp pullbacks around key headlines or macro shocks.
6. Product and Regulatory News You Should Know
Reddit drops r/popular as default: CEO says it “sucks”
On December 5, Business Insider reported that Reddit is retiring the r/popular feed as a default view for new users. [31]
Key details:
- CEO Steve Huffman said r/popular “gives the false impression of a singular Reddit culture” and bluntly called the feed “r/popular sucks” in a post.
- The change aims to highlight personalized, interest‑based feeds instead, emphasizing the unique cultures of individual communities.
- Reddit has 116 million daily visitors, and Huffman framed the shift as part of a broader push toward smaller, more relevant community experiences. [32]
The company is also:
- Limiting how many high‑traffic communities a single person can moderate.
- Tweaking how community sizes are displayed.
Why it matters for the stock:
- A more tailored experience may enhance user engagement and ad relevance—both key for ARPU growth.
- But any product change that touches core user behavior can also spark backlash in Reddit’s often‑vocal community, which investors should monitor.
Regulatory risk: Australia’s teen social media ban includes Reddit
Reuters recently reported that Australia’s internet watchdog widened its world‑first teen social media ban to include Reddit and video platform Kick, with the possibility of adding more sites over time. [33]
This doesn’t hit Reddit’s global numbers in a material way yet, but it underscores:
- Growing regulatory scrutiny of youth access to social platforms.
- The risk that other jurisdictions could follow with age‑based restrictions or compliance burdens.
AI licensing and lawsuits
As Reuters notes, Reddit has become a valuable data source for AI companies, striking licensing deals with Google and OpenAI to supply conversational content for large language models. [34]
At the same time, Reddit has:
- Filed lawsuits against Perplexity AI and others over alleged illegal scraping,
- With analysts warning that Reddit must continue to defend its IP to preserve long‑term value from its data. [35]
B2B ad expansion
On the advertising front, Business Wire recently announced a strategic partnership between Bombora and Reddit, bringing B2B intent‑based audiences onto Reddit’s ad platform to target business buyers at scale. [36]
Net effect heading into Monday:
- Product changes and partnerships are tilting Reddit toward deeper engagement and higher‑value ad segments,
- While regulators and courts are becoming more important variables in the investment case.
7. Key Risks to Keep in Mind
Going into Monday’s trading, the Reddit bull story is compelling—but not without major risks:
- Rich valuation risk
- Trading at >130× trailing earnings and ~14× forward sales, Reddit is priced for continued hyper‑growth and sustained high margins. [37]
- Any slowdown in revenue growth, user metrics, or ad demand could trigger outsized multiple compression.
- User‑growth dynamics
- Global DAU is growing strongly, but U.S. DAU growth has decelerated, according to Reuters’ Q3 post‑earnings piece. [38]
- If mature markets plateau faster than expected, Reddit will need international growth and ARPU expansion to carry the load.
- Regulatory and content‑moderation risk
- Community reaction to product changes
- Removing r/popular and altering moderation rules may ultimately boost engagement—but Reddit’s history shows that major changes can spark user revolts, which could temporarily weigh on traffic or reputation. [41]
- High volatility and crowding
- With a beta above 2 and strong presence in popular ETFs and growth portfolios, Reddit can swing sharply on macro news, risk‑on/off rotations, or a rush of options activity. [42]
8. What to Watch at Monday’s Open (December 8, 2025)
Heading into the December 8 session, these are the practical things traders and investors may want to watch:
- Price reaction to December 7 institutional news
Will the highlighted buying by Northwestern Mutual and Amundi support the stock, or will markets focus instead on the sizeable insider selling? [43] - Whether Reddit holds recent breakout levels
After a ~5% jump on Friday and a strong weekly move, watch if RDDT can hold above the low‑$230s or whether profit‑taking triggers a deeper pullback consistent with ChartMill’s “overstretched” warning. [44] - News flow around AI and data licensing
Any updates on additional AI data deals or litigation developments with Perplexity and other firms could quickly change sentiment, given how central Reddit’s data is to the long‑term thesis. [45] - Community and media reaction to r/popular’s removal
Over the weekend and into Monday, investor forums and tech media will likely keep debating whether removing r/popular boosts or harms engagement; signs of user backlash or strong adoption could both move the stock. [46] - Macro risk appetite
As a high‑beta, richly priced growth name, Reddit tends to amplify whatever the broader market is doing—rallying harder in risk‑on days and falling faster in sell‑offs. [47]
9. Bottom Line
As of December 7, 2025, Reddit (RDDT) sits at the crossroads of:
- Exceptional growth: 60–70%+ revenue gains, rapidly rising ARPU, strong free‑cash‑flow conversion. [48]
- A powerful AI and data‑licensing narrative that taps into one of the hottest themes in markets. [49]
- Elevated expectations and valuation, with Wall Street divided on how much upside remains after a near‑double in six months. [50]
For traders and long‑term investors alike, Monday’s open will be about balancing that impressive growth and institutional sponsorship against valuation, regulatory risk, and technical stretch.
References
1. investor.redditinc.com, 2. stockanalysis.com, 3. stockanalysis.com, 4. www.marketbeat.com, 5. www.tradingview.com, 6. www.tradingview.com, 7. stockanalysis.com, 8. www.marketbeat.com, 9. www.marketbeat.com, 10. www.marketbeat.com, 11. www.marketbeat.com, 12. investor.redditinc.com, 13. investor.redditinc.com, 14. investor.redditinc.com, 15. www.reuters.com, 16. www.reuters.com, 17. investor.redditinc.com, 18. www.nasdaq.com, 19. www.marketbeat.com, 20. stockanalysis.com, 21. www.tradingview.com, 22. www.marketbeat.com, 23. stockanalysis.com, 24. www.nasdaq.com, 25. www.nasdaq.com, 26. www.nasdaq.com, 27. www.chartmill.com, 28. www.chartmill.com, 29. www.chartmill.com, 30. www.tradingview.com, 31. www.businessinsider.com, 32. www.businessinsider.com, 33. stockanalysis.com, 34. www.reuters.com, 35. www.reuters.com, 36. stockanalysis.com, 37. stockanalysis.com, 38. www.reuters.com, 39. stockanalysis.com, 40. danelfin.com, 41. www.businessinsider.com, 42. www.tradingview.com, 43. www.marketbeat.com, 44. www.chartmill.com, 45. www.reuters.com, 46. www.businessinsider.com, 47. www.tradingview.com, 48. investor.redditinc.com, 49. www.reuters.com, 50. www.nasdaq.com
