NEW YORK, Dec. 27, 2025, 3:52 p.m. ET — Market closed (weekend)
Reddit, Inc. (NYSE: RDDT) is heading into the final trading stretch of 2025 with Wall Street’s attention swinging back toward two core questions: how far its ad business can scale and whether its human-generated content can become a durable “toll road” for AI training and search.
With U.S. equities closed for the weekend, investors are using the pause to digest the latest analyst commentary and position for Monday’s open. Reddit shares finished the most recent session (Friday, Dec. 26) at $225.77, down 0.04% on the day, after trading between $220.26 and $226.22. After-hours indications showed the stock at $225.15. [1]
What’s new in the last 24–48 hours
1) Needham reiterates “Buy,” calls Reddit a top idea for 2026
A Needham note published early Saturday reiterated a “Buy” rating and a $300 price target, adding RDDT to the firm’s “Conviction List.” The note framed Reddit as a standout among internet platforms because its content is “100% human-created,” which the analyst argues boosts trust and potential value to large language models and AI products. [2]
Needham analyst Laura Martin also pointed to advertiser feedback in “channel checks,” emphasizing Reddit’s niche communities and high-intent audiences as a key differentiator versus broader social platforms. [3]
2) A routine 13F-driven ownership update
Separately, MarketBeat highlighted that Nvwm LLC disclosed a new third-quarter position of 5,143 shares in Reddit, valued around $1.18 million, via a 13F filing. While 13F data is backward-looking, these updates can still influence sentiment—especially for stocks that trade on momentum and narrative. [4]
Where Reddit stock stands going into Monday
Reddit’s trading setup into the next session looks like a classic year-end pattern: big themes, but lighter catalysts on the calendar.
- Last close (Dec. 26): $225.77 [5]
- After-hours (Dec. 26): $225.15 [6]
- Day’s range (Dec. 26): $220.26–$226.22 [7]
- 52-week range: $79.75–$282.95 [8]
That 52-week high matters for context: at Friday’s close, RDDT sits roughly 20% below the 52-week peak—useful framing as investors debate whether the stock is “consolidating” or “stalling” after a major run. [9]
Why the “ad engine” remains the cornerstone of the bull case
Reddit’s fundamentals—and the market’s willingness to pay up for them—have been heavily influenced by the company’s recent execution in advertising.
In its Q3 2025 results, Reddit reported:
- Revenue: $585 million (+68% year-over-year)
- Ad revenue: $549 million (+74% year-over-year)
- Daily Active Uniques (DAUq): 116.0 million (+19% year-over-year)
- Net income: $163 million (diluted EPS $0.80)
- Adjusted EBITDA: $236 million (margin 40%) [10]
Reddit CEO Steve Huffman said the platform offers “authentic conversations” people can’t find elsewhere—an argument that underpins both advertiser demand and AI licensing interest. [11]
Just as important for forward expectations, Reddit guided for Q4 2025 revenue of $655 million to $665 million and Adjusted EBITDA of $275 million to $285 million (guidance issued with Q3 results). [12]
The second engine: AI licensing, search, and the value of human content
The debate around Reddit’s “AI upside” has two parts:
A) Contracted licensing revenue
Reuters reported in early 2024 that Reddit reached a content licensing agreement with Alphabet-owned Google worth about $60 million per year, reflecting growing willingness among model builders to pay for high-quality content sources. [13]
Separately, TechCrunch reported that Reddit disclosed $203 million in total contract value from data-licensing agreements in its IPO prospectus. [14]
B) Enforcement and litigation against scraping
In October 2025, Reuters reported that Reddit sued AI startup Perplexity (and others) over alleged “industrial-scale” scraping to train AI systems, and noted Reddit had filed a similar lawsuit against Anthropic earlier in 2025. [15]
Those legal actions matter for investors because they shape how defensible Reddit’s dataset becomes—whether through paid licensing, stronger access controls, or settlements that set precedent.
Forecasts and analyst targets: what Wall Street is modeling
Analyst forecasts around RDDT remain wide—typical for a stock that is still early in its life as a public company and is priced for strong growth.
- TipRanks shows a 12-month average price target of $253.72 (about 12% upside from the referenced price), with a high forecast of $325 and low forecast of $174, and a consensus rating described as Moderate Buy. [16]
- Needham’s headline call reiterates a $300 target and positions Reddit as a “best idea” into 2026. [17]
Earlier this week, Barron’s described the stock as looking “stuck” despite bullish analyst framing, and noted skepticism in the market—pointing to meaningful short interest (over 14% of shares sold short, per the report) alongside optimism about ads and AI licensing. [18]
Investor’s Business Daily also highlighted Needham’s thesis, including the idea that Reddit’s communities can be especially attractive to advertisers due to intent and relevance, and cited Needham forecasts for 2026 financial performance. [19]
Insider activity: what filings show (and what they don’t)
Investors often track insider filings for high-multiple stocks, but context matters: option exercises, sales tied to tax obligations, and 10b5-1 plans can look bearish without necessarily being a fundamental signal.
Two examples visible in SEC Form 4 filings include:
- A filing for Steve Ladd Huffman (CEO & President) showing multiple transactions dated Sept. 30, 2025, including sales disclosed as made under a Rule 10b5-1 trading plan (per the filing’s footnote). [20]
- A filing for Benjamin Seong Lee (Chief Legal Officer) showing transactions dated Dec. 16, 2025 (including sales) and Dec. 18, 2025. [21]
These disclosures can influence short-term sentiment, but investors generally weigh them alongside the company’s growth rates, margin trajectory, and forward guidance.
What investors should know before the next session
With markets closed today, the most practical “before Monday” checklist for Reddit stock centers on catalyst risk and price levels:
Watch these technical reference points from Friday:
- Support zone: Friday’s low at $220.26 (a level traders may revisit if risk-off sentiment hits high-beta growth). [22]
- Near-term ceiling: Friday’s high near $226.22 (a break above could bring momentum traders back quickly). [23]
Know what’s on deck next: earnings timing is still “estimated.”
MarketScreener lists Reddit’s Q4 2025 earnings release as projected for Feb. 17, 2026 (not a company-confirmed date). [24]
Meanwhile, Nasdaq’s earnings page currently shows the earnings date as not available, reinforcing that investors should treat calendars as provisional until confirmed by the company. [25]
Re-anchor on the fundamentals that will likely drive the next leg:
- Whether Reddit can sustain ad growth anywhere near Q3’s +74% year-over-year ad revenue pace. [26]
- Whether Q4 results come in within or above the company’s prior guidance range ($655M–$665M revenue). [27]
- Any weekend headlines on AI scraping litigation or licensing discussions, which can move sentiment quickly given how central “AI optionality” has become to the bull narrative. [28]
Bottom line heading into Monday
Reddit stock enters the next trading session with a high-profile bullish reiteration in the background and a familiar debate in the foreground: is the company transitioning from “hyper-growth story” to “durable growth business,” or is the market already pricing in too much of that future?
For now, the biggest investor signal may be simple: the story remains intact, but the stock is trading like it needs a fresh catalyst—either a clear earnings-date confirmation, a meaningful product/ads update, or a new AI monetization headline—before it can convincingly re-test its 2025 highs. [29]
References
1. www.investing.com, 2. www.insidermonkey.com, 3. www.insidermonkey.com, 4. www.marketbeat.com, 5. www.investing.com, 6. www.investing.com, 7. www.investing.com, 8. www.investing.com, 9. www.investing.com, 10. s203.q4cdn.com, 11. s203.q4cdn.com, 12. s203.q4cdn.com, 13. www.reuters.com, 14. techcrunch.com, 15. www.reuters.com, 16. www.tipranks.com, 17. www.insidermonkey.com, 18. www.barrons.com, 19. www.investors.com, 20. www.sec.gov, 21. www.sec.gov, 22. www.investing.com, 23. www.investing.com, 24. www.marketscreener.com, 25. www.nasdaq.com, 26. s203.q4cdn.com, 27. s203.q4cdn.com, 28. www.reuters.com, 29. www.insidermonkey.com
