Reddit Stock (RDDT) News Today, Dec. 12, 2025: Australia Lawsuit, Verified Profiles Test, and Fresh 2026 Analyst Price Targets

Dec. 12, 2025 — Reddit, Inc. (NYSE: RDDT) is in the spotlight today as investors balance legal and regulatory headlines, new trust-and-safety product testing, and fresh Wall Street forecasts heading into 2026. RDDT shares were recently trading around $229.81, down about 1.6% on the day, with a market capitalization near $43.0 billion.

While the stock’s day-to-day move is modest, the news cycle around Reddit has become meaningfully more active this week—especially with Australia’s new under-16 social media restrictions now live and major firms debating how AI will reshape internet traffic, ad economics, and platform “moats.”

Reddit stock price today: where RDDT is trading on Dec. 12, 2025

As of the latest available quote, RDDT traded near $229.81, after opening around $233.50 and moving between roughly $223.57 and $237.17 intraday.

Two context points many traders are watching:

Reddit’s 52-week high has been cited around $282.95, leaving shares still well below the peak despite a strong 2025 run. ^[1]
Several valuation-focused writeups note that Reddit’s multiple remains elevated versus many peers, which can amplify reactions to regulatory and growth headlines. ^[2]

Why Reddit stock is in the news right now

Three storylines are dominating today’s RDDT coverage:

Reddit sues Australia over the under-16 social media ban
Reddit begins testing “verified profiles” with a gray checkmark
Analysts update price targets (Jefferies raises to $325) while warning about AI risks

On top of that, investors are also digesting fresh insider-trading disclosures tied to a prearranged (10b5-1) plan.

1) Australia lawsuit: Reddit challenges the under-16 social media ban

A major headline for Reddit stock today is the company’s decision to file a lawsuit in Australia’s High Court seeking to overturn (or at least narrow) the country’s new under-16 social media restrictions. Reuters reports Reddit is arguing the law interferes with constitutionally implied freedom of political communication and also contends it should be excluded because it doesn’t meet the legal definition of “social media” under the ban. ^[3]

Key details investors are watching:

The law went live on Dec. 10, 2025, described as a world-first nationwide legally enforced minimum age to access social media. ^[4]
Platforms are required to bar underage users or face fines up to A$49.5 million, while underage users and caregivers are not punished under the law, according to Reuters. ^[5]
Reuters also notes platforms have discussed compliance methods such as age estimation and age inference, including approaches that may rely on selfies or behavioral signals—raising privacy sensitivity for users and regulators alike. ^[6]

From a stock-market perspective, the lawsuit matters less for near-term revenue (Australia is only one geography) and more for what it signals: compliance cost, legal overhang, and potential precedent for other jurisdictions exploring age gates and platform accountability rules.

The Guardian adds that Reddit has publicly framed the legislation as potentially forcing intrusive verification even for adults and argues the ban creates an “illogical patchwork” of included platforms—while still stating it implemented age-assurance measures as required. ^[7]

2) Product and trust updates: Reddit begins testing verified profiles

Separate from the Australia legal fight, Reuters reports Reddit has begun testing a new feature called verified profiles, using a gray checkmark next to usernames to help users identify verified individuals and businesses in situations where authenticity matters (for example, official announcements). ^[8]

Notable elements for investors:

Verification is currently optional, opt-in, and limited to a small curated group, including some users who have already self-identified and businesses that previously held an “official” badge. ^[9]
Reddit emphasized the program is not paid verification at this stage and does not grant special privileges or additional access to private data. ^[10]

Why this matters to RDDT shareholders: over time, better identity signals can strengthen Reddit’s position with advertisers and partners by reducing impersonation and scam risk—particularly as AI-generated content and deepfakes become more common.

3) Wall Street forecast: Jefferies raises Reddit price target to $325, but flags AI and margin pressure

One of the most widely circulated analyst notes this week: Jefferies raised its price target on Reddit to $325 from $300 and reiterated a Buy rating. ^[11]

However, the same note struck a cautionary tone on the broader internet sector:

Jefferies warned that incremental investments across internet platforms could limit margin expansion, and concerns around AI “disintermediation” (AI systems sitting between users and traditional platforms) could cap multiple expansion. ^[12]

In practical terms, this is the central 2026 debate around Reddit stock:

Bull case: Reddit content is uniquely valuable training and retrieval data for AI models and remains critical to the open web, supporting both ad growth and licensing opportunities.
Bear case: AI answer engines reduce pageviews and referral traffic, pressuring ad impressions and making growth more dependent on paid distribution and product reinvention.

Where do other price targets sit?

Price target data varies by provider and analyst coverage set, but the current “map” looks like this:

A Nasdaq/Fintel-based snapshot cited an average one-year target around $247.40 (as of Dec. 6), with forecasts spanning roughly $116 to $318. ^[13]
Another widely referenced tracker shows a consensus target near $220.04, with a high end reaching $325. ^[14]
MarketBeat lists an average target around $230.28, with a stated high of $325. ^[15]

With RDDT near $230, Jefferies’ $325 target implies roughly 41% upside, while many consensus averages imply a flatter return profile—one reason the stock can react sharply to incremental news on user growth, traffic sources, and regulation.

Insider activity: Form 4 details show Dec. 9 sales under a 10b5-1 plan

Investors tracking “insider selling” headlines should note the nuance in the filings.

A Form 4 filed with the SEC shows Reddit’s Chief Accounting Officer Michelle Marie Reynolds reported multiple sales of Class A common stock on Dec. 9, 2025, totaling 11,249 shares, and the filing indicates the transactions were made under a Rule 10b5-1 trading plan adopted on Sept. 9, 2025. ^[16]

The Form 4 also reports prices across a range of sales (weighted averages shown per line item) and shows holdings following the transactions. ^[17]

Separately, Reddit’s investor relations site lists a Form 144 dated Dec. 9, 2025 describing a “proposed sale of securities.” ^[18]

How markets typically interpret this: 10b5-1 plan sales are often treated as less “signal-rich” than discretionary selling, but heavy insider-sales headlines can still weigh on sentiment when a stock trades at a premium multiple.

Fundamentals check: what Reddit last reported (and what it guided)

Even though today’s headlines are mostly legal/product/analyst-driven, Reddit’s underlying fundamentals remain the backbone of the bull case.

In its Q3 2025 results, Reddit reported:

Revenue of $585 million (+68% year over year)
Ad revenue of $549 million (+74% year over year)
Net income of $163 million (28% margin)
DAUq of 116.0 million (+19% year over year)
Diluted EPS of $0.80 ^[19]

On outlook, Reuters reported Reddit forecast fourth-quarter revenue of $655 million to $665 million, above the analyst average estimate cited by LSEG in that report—crediting momentum in AI-powered advertising tools. ^[20]

IBD’s Dec. 12 analysis also highlights expectations for Q4 revenue near $665 million and EPS around $0.93, reinforcing how much the market is pricing in continued growth and operating leverage. ^[21]

2026 outlook: the catalysts (and the risks) shaping Reddit stock forecasts

Potential catalysts bulls are watching

Regulatory clarity: whether Australia’s law stands as-is, is narrowed, or is struck down—and whether similar frameworks spread. ^[22]
Trust features that support monetization: verified profiles may make brand participation and official communications safer and more scalable. ^[23]
Ad-tech performance: continued gains from AI-optimized ad placements and expanding advertiser count have been key themes in Reddit’s recent narrative. ^[24]
Valuation debate: Simply Wall St’s Dec. 10 analysis frames Reddit as only modestly undervalued versus its internal fair value estimate, while emphasizing the stock’s elevated multiple and sensitivity to sentiment shifts. ^[25]
“$300 in 2026” scenario math: one analysis argues reaching $300 would require roughly mid-20% gains from late-$230s levels and would still imply a very high forward earnings multiple—highlighting that execution must remain strong. ^[26]

Key risks (especially relevant for Google News readers)

AI disintermediation: if AI assistants answer questions without sending users to Reddit, engagement and ad inventory could be pressured—even if Reddit content remains valuable. ^[27]
Margin vs. growth trade-offs: analysts are explicitly warning that internet platforms may reinvest aggressively in product and AI, limiting margin expansion. ^[28]
Regulatory and privacy backlash: age verification and age estimation methods are politically sensitive and can invite scrutiny. ^[29]
Volatility and premium valuation: multiple third-party writeups emphasize Reddit’s wide trading range and valuation sensitivity—meaning narratives can move the stock quickly in both directions. ^[30]

What to watch next for RDDT

Looking ahead, investors will likely focus on:

Australia High Court timeline and any interim court developments ^[31]
Whether verified profiles expand beyond testing and how Reddit governs verification eligibility ^[32]
The next earnings date: market calendars suggest Reddit’s next report is expected in February 2026 (some sources cite Feb. 11, though timing can change until formally confirmed by the company). ^[33]
Further analyst revisions as firms publish 2026 playbooks and refresh revenue/EPS models heading into the new year ^[34]