NEW YORK, December 30, 2025, 21:26 ET — Market closed.
- Reddit closed down 0.55% at $233.36 in New York trading
- An SEC filing showed CTO Christopher Slowe sold 14,000 shares under a Rule 10b5-1 plan
- Needham reiterated a Buy and a $300 target, citing Reddit’s prominence in AI-generated answers
Reddit, Inc. (RDDT) shares slipped 0.55% on Tuesday to close at $233.36 after a regulatory filing showed its chief technology officer sold shares.
The pullback landed in a holiday-thin stretch of trading, when fresh headlines can move growth stocks more than usual. Investors are also trying to pin down whether Reddit can turn its growing role in AI-powered search and chatbots into steadier advertising and data-licensing revenue.
Needham reiterated a Buy rating and a $300 price target on Monday, pointing to what it described as Reddit’s “AI citation dominance” — how often its communities show up as sources in AI-generated answers.
Reddit swung between $229.08 and $236.93, with about 2.48 million shares changing hands. The stock was last quoted at $232.65 in extended trading, according to Stockanalysis.
Christopher Slowe sold 14,000 shares on Dec. 22 for about $3.27 million at weighted-average prices ranging from $231.49 to $240.10, the filing showed. He also exercised options and ended with 171,694 shares held directly after the transactions.
The trades were executed under a Rule 10b5-1 plan — a pre-set trading schedule that lets insiders buy or sell stock at set times rather than making discretionary trades.
Needham analyst Laura Martin said Reddit is “a key source of information for large language models,” the AI systems behind chatbots and search assistants, according to InvestorsObserver.
A Semrush study that tracked citations across ChatGPT, Google’s AI Mode and Perplexity found Reddit among the most-cited domains, while also showing that citation patterns can swing sharply over short periods.
U.S. stocks ended modestly lower, with the S&P 500 down 0.14% and the Nasdaq off 0.23% as traders digested Fed minutes and positioned into year-end. (See Reuters market wrap here.)
Minutes from the Federal Reserve’s Dec. 9-10 meeting showed officials were divided after a quarter-point cut that lowered the benchmark rate to a 3.5%–3.75% range.
For advertisers, Reddit competes for budgets with larger social platforms such as Meta Platforms and Snap, while its AI visibility is increasingly compared with content-heavy sites like Wikipedia and YouTube.
Before the next session on Wednesday — the final trading day of 2025 — traders will watch whether thin liquidity keeps amplifying moves in momentum names like Reddit. Tuesday’s low near $229 is a level short-term traders are likely to monitor.
The next macro tests come in early January, with December jobs and consumer-price data due Jan. 9 and Jan. 13 and the Fed’s next meeting scheduled for Jan. 27-28, Reuters reported in its minutes story here. Investing.com lists Feb. 18, 2026 as Reddit’s next earnings date here, putting the focus on ad demand and any monetization tied to AI-driven discovery.
