New York, Jan 12, 2026, 14:09 EST — Regular session
- Reddit shares fell roughly 1.1% in afternoon trading while the broader market edged up slightly
- Wells Fargo raised its price target to $207, yet maintained an equal-weight rating
- Recent Form 4 filings reveal that Reddit’s chief legal officer and CFO have sold shares, following pre-set trading plans
Shares of Reddit, Inc. dropped roughly 1.1% to $241.85 on Monday, retreating after earlier trading between $251.54 and $238.53. The S&P 500 ETF SPY and Nasdaq-100 ETF QQQ each gained about 0.2%. Meanwhile, Meta slid, while Snap and Pinterest saw slight gains.
Timing is crucial. Rate-sensitive growth stocks have been volatile ahead of Tuesday’s U.S. consumer price index report for December 2025, set for 8:30 a.m. ET. This data could swiftly shift expectations around borrowing costs.
Reddit is behaving more like a momentum stock than a slow-growth ad business. Despite the share price sitting well above several sell-side targets, traders are swift to fade rallies and equally fast to hit back at any sign of additional selling pressure.
On Monday, Wells Fargo boosted its price target for Reddit to $207 from $186, while keeping an equal-weight rating, per Benzinga’s analyst ratings page. (Benzinga)
Insider moves grabbed attention. Chief Legal Officer Benjamin Seong Lee offloaded 31,250 shares, netting roughly $8.13 million, according to a Form 4 filing. At the same time, Chief Financial Officer Andrew Vollero sold 8,913 shares, bringing in about $2.26 million. (SEC)
Both filings showed the trades came under Rule 10b5-1 plans — preset instructions allowing sales to be scheduled ahead of time. That can soften the optics somewhat, though it seldom completely removes scrutiny in a stock that’s been moving quickly.
Reddit’s latest figures shed light on the market’s jitteriness. The company reported a 19% year-on-year jump in daily active unique users, reaching 116.0 million. Revenue surged 68% to $585 million. Looking ahead, Reddit projected fourth-quarter revenue between $655 million and $665 million, with adjusted EBITDA—excluding interest, taxes, depreciation, and amortization—forecast between $275 million and $285 million.
Reddit has been pushing tools that let advertisers zero in on specific “subreddits,” pitching its data as a prime resource for AI training. Chief Operating Officer Jen Wong revealed the company is “in early testing of our end-to-end automated campaign platform that uses AI to streamline campaign setup.”
The competitive landscape is complicated. Reddit is battling for ad revenue against bigger platforms and often moves in step with them, even on days when the news is specific to the company. Monday seemed to reflect both dynamics.
Downside risks remain evident. Reddit has already warned that shifts in Google search can cause traffic swings. A fresh slowdown in user growth might drag down ad prices and sentiment fast, particularly if advertisers pull back amid a weaker economy.
Analyst opinions are divided. Argus bumped its Reddit price target from $250 to $300, maintaining a buy rating, TipRanks reported.
Tuesday’s 8:30 a.m. ET CPI report is next on investors’ radar, promising the week’s first major data point. After that, all eyes will shift to when Reddit officially announces its next earnings date and 2026 guidance.
