Reddit, Inc. (NYSE: RDDT) is back in the spotlight on Tuesday, December 16, 2025 as fresh Wall Street outlook pieces, new stock analyses, and ongoing regulatory headlines collide with a stock that has already delivered a big run in 2025.
As of the latest available quote, Reddit shares traded around $221.57, up roughly $3.07 (about 1.4%) on the day, after swinging between an intraday low near $214.00 and a high around $223.37. Reddit’s market capitalization sits at roughly $43.0 billion, and the stock’s quoted P/E ratio is about 123—a reminder that investors are still pricing RDDT as a high-growth, high-expectations internet platform.
Below is what’s driving Reddit stock coverage right now, what the newest forecasts are signaling, and what investors are watching next.
What’s making Reddit stock news on Dec. 16, 2025
Reddit stock’s “why now?” story today is a mix of (1) bullish 2026 pick lists, (2) new digital advertising-focused analysis, and (3) regulatory risk headlines that could ripple beyond Australia.
1) Jefferies puts Reddit on a short list of “top internet picks” for 2026
One of the most-circulated pieces in markets coverage this week highlights Jefferies’ view that—despite renewed anxiety about an “AI bubble” and a choppy stretch for tech—some internet names still have “peer-leading growth” and strong fundamentals. Reddit is included among Jefferies’ top internet picks, and Jefferies’ price target for Reddit is $325, above broader consensus estimates. [1]
The takeaway: even after a strong year, some major analysts believe product improvements and engagement trends can support further upside.
2) A fresh “RDDT vs. META” analysis frames Reddit as an ad-growth story
A widely shared Zacks-branded analysis (republished via Finviz) positions Reddit alongside Meta as a digital advertising platform competing for ad budgets.
The analysis argues Reddit is benefiting from:
- expanding ad tools (e.g., Dynamic Product Ads, measurement and conversion tools),
- rising engagement and user activity metrics,
- and product work that pushes discovery/search deeper into the core experience.
It cites Q3 advertising strength and points to ongoing product initiatives like Reddit Answers and search-led engagement. [2]
3) Regulation: Australia’s under-16 social media ban is now a live legal battle—and other countries are watching
In one of the most material non-earnings headlines for the stock, Reddit has filed a lawsuit in Australia’s High Court seeking to overturn (or at least narrow) a new law restricting social media access for under-16s. Reuters reported that Reddit’s filing argues it should be exempt—even if the ban stands—because it does not meet the legal definition of “social media,” and the company raised concerns about privacy and political expression. [3]
The Associated Press also reported Reddit’s position that the law could force intrusive age verification processes and create an “illogical patchwork” of which platforms are covered, while still stating it will comply as the challenge proceeds. [4]
And the issue may be getting bigger, not smaller: on Dec. 16, Reuters reported that a South Korea nominee for a media commission said he would pursue teen social media curbs, explicitly pointing to Australia’s move as a model—underscoring how quickly youth-access rules could spread across jurisdictions. [5]
The fundamentals behind Reddit stock: what the company just delivered
The bullish case for Reddit stock in late 2025 is rooted in one question: Can Reddit convert its uniquely “searchable” community conversations into durable advertising and monetization growth—profitably?
Reddit’s most recent quarterly report gives the market plenty to debate.
Q3 2025 results: strong revenue growth, profitability, and cash generation
In its Q3 2025 release, Reddit reported:
- Daily Active Uniques (DAUq): 116.0 million, up 19% year over year
- Revenue: $585 million, up 68% year over year
- Ad revenue: $549 million, up 74% year over year (the core driver)
- Net income: $163 million (about 28% net margin), diluted EPS: $0.80
- Adjusted EBITDA: $236 million (about 40% of revenue)
- Operating cash flow: $185 million and Free Cash Flow: $183 million
- Cash, cash equivalents, and marketable securities: $2.226 billion [6]
Those are the kinds of numbers that help explain why Reddit continues to attract bullish forecasts even after a major price run.
Q4 2025 outlook: another step up in scale
Reddit also issued Q4 guidance in the same release, estimating:
- Revenue of $655 million to $665 million
- Adjusted EBITDA of $275 million to $285 million [7]
That guidance matters because it suggests Reddit expects to keep scaling revenue while sustaining unusually high profitability metrics for a still-young public internet platform.
Reddit stock forecast: analyst price targets and earnings expectations right now
There isn’t one “Reddit stock forecast” in the market today—there are several, and the spread is wide.
Price targets: bulls at $325, bears as low as $75
MarketBeat’s compiled analyst view (as of Dec. 16) shows:
- Average price target:$230.28
- High target:$325
- Low target:$75 [8]
Benzinga’s analyst ratings roundup also highlights the same headline extremes: Jefferies at $325 (issued Dec. 11, 2025) and a $75 low target attributed to Redburn Atlantic (earlier coverage). [9]
Meanwhile, MarketWatch’s analyst-estimates page lists an average target price around $250.24 (with 29 ratings), suggesting that “consensus” depends heavily on the dataset and methodology being referenced. [10]
How to interpret the gap:
- The high targets assume Reddit can continue converting user engagement and search behavior into higher monetization (ARPU), with sustained ad performance tooling gains and international expansion.
- The low targets reflect worries that growth cools, that ad pricing power isn’t durable, or that regulation/platform changes compress future margins.
Earnings forecasts: strong growth expectations remain central
The Zacks/Finviz analysis notes a Zacks consensus estimate for 2025 earnings of about $2.35 per share, implying triple-digit year-over-year growth in EPS. [11]
Investor’s Business Daily coverage similarly emphasizes a rapid earnings ramp, citing expected 2025 EPS growth and projecting continued earnings expansion into 2026 (though estimates vary by source and update cadence). [12]
Why Reddit stock is attracting institutional attention
One reason RDDT keeps showing up in market chatter: institutions appear to be treating it less like a “meme-adjacent” social media name and more like a core growth internet holding.
Investor’s Business Daily reported that Reddit saw a $3.68 billion capital infusion from top mutual funds, with fund ownership rising sharply within a year (as tracked by IBD’s data). [13]
On the more granular end, MarketBeat also published a steady stream of filings-focused updates, including today’s note that Venture Visionary Partners LLC increased its stake in Reddit. [14]
Institutional flows don’t guarantee future performance, but they do help explain why dips in RDDT have often found buyers in 2025.
The biggest risks for Reddit stock right now
A Google News/Discover-style stock story needs the other side of the ledger too—because the same forces powering Reddit’s rise can amplify downside volatility.
1) Regulatory uncertainty is escalating, not fading
Australia’s under-16 social media restriction is no longer theoretical—it’s now an enforcement regime with major fines and a growing compliance ecosystem, while Reddit is simultaneously challenging the law’s scope and applicability. [15]
With Reuters reporting that other countries are examining similar teen restrictions, investors may begin pricing a “global regulation premium” into the sector, especially if age verification and enforcement become standardized. [16]
2) Valuation remains demanding
At roughly $43 billion in market cap and a quoted P/E above 120 on the latest quote, Reddit’s valuation implies investors expect strong growth to persist—and that the company can defend margins as it scales.
The Zacks/Finviz analysis also frames RDDT as more expensive than Meta on forward sales multiples (its cited forward price-to-sales for Reddit is notably higher). [17]
3) Insider selling remains a headline risk
Insider sales are common at newly public companies, especially under 10b5-1 plans, but they still shape sentiment—particularly when the stock has run hard.
For example, Investing.com reported that Reddit’s Chief Accounting Officer sold shares in early December, referencing SEC Form 4 disclosures and noting the transaction’s size and price range. [18]
MarketBeat also summarized insider selling over the last quarter in its coverage around ratings changes, which can reinforce the perception that executives are taking chips off the table after a strong move. [19]
What to watch next for Reddit stock
For readers tracking Reddit stock today, the next catalysts are straightforward—and high impact.
1) Q4 execution vs. guidance
Reddit guided Q4 revenue to $655M–$665M and Adjusted EBITDA to $275M–$285M. Any deviation—especially on ads or engagement—can move the stock sharply because expectations are now high. [20]
2) Next earnings date
MarketBeat lists Reddit’s next earnings (estimated) around Feb. 11, 2026. While dates can shift, the market typically starts “positioning” weeks in advance for high-volatility growth names. [21]
3) Regulation headlines (Australia and beyond)
The Australian case—and whether other countries copy it—could become a recurring overhang (or, in a best-case scenario, a manageable compliance event that fades into the background). [22]
4) The advertising cycle into 2026
Reddit is ultimately competing in a massive global ad market. Reuters has reported that ad forecasters still see a trillion-dollar-plus global market with digital continuing to dominate, even as macro uncertainty can cause brands to pause or reallocate spend. [23]
For Reddit, the key “Discover-friendly” storyline investors will keep chasing is whether its ad tools and search behavior translate into sustained ARPU expansion—without sacrificing the authenticity that makes Reddit different.
Bottom line on Reddit stock (RDDT) on Dec. 16, 2025
Reddit stock is trading higher today and remains one of the market’s most watched internet growth stories because the company is delivering what investors demand from modern digital platforms: fast top-line growth, improving monetization, and meaningful profitability/cash flow—while also facing the classic risks of scale: regulation, valuation pressure, and sentiment whiplash. [24]
If 2025 was the year Reddit proved it could translate community attention into serious financial results, then 2026—at least in the eyes of the bulls—may be the year it tries to prove the model can hold up through regulation battles and a shifting ad cycle. [25]
References
1. www.investopedia.com, 2. finviz.com, 3. www.reuters.com, 4. apnews.com, 5. www.reuters.com, 6. investor.redditinc.com, 7. investor.redditinc.com, 8. www.marketbeat.com, 9. www.benzinga.com, 10. www.marketwatch.com, 11. finviz.com, 12. www.investors.com, 13. www.investors.com, 14. www.marketbeat.com, 15. www.reuters.com, 16. www.reuters.com, 17. finviz.com, 18. www.investing.com, 19. www.marketbeat.com, 20. investor.redditinc.com, 21. www.marketbeat.com, 22. www.reuters.com, 23. www.reuters.com, 24. investor.redditinc.com, 25. www.investopedia.com
