As of 3:52 p.m. ET in New York on Friday, December 26, 2025, Reddit, Inc. (NYSE: RDDT) shares are trading around $225.15, down about 0.3% on the day, with an intraday range of $220.51 to $226.87.
This is also a holiday-thin session: U.S. markets reopened after Christmas with indexes hovering near record territory and trading volumes widely described as light, a backdrop that can amplify individual stock moves late in the day. [1]
Is the U.S. stock market open right now?
Yes. The NYSE and Nasdaq are open for normal hours on Dec. 26, with regular trading running 9:30 a.m. to 4:00 p.m. ET—meaning this update lands just minutes before the closing bell. [2]
Why Reddit stock is in focus heading into the close
Even on a relatively quiet tape, RDDT remains a name investors are actively debating because the company sits at the crossroads of three powerful themes:
- Ad-tech modernization (AI-driven targeting and automation)
- Data licensing for AI model training and “answer engines”
- Platform trust and safety (verification, moderation tools, age assurance)
Those themes are colliding with a stock that has already delivered a massive run since the IPO—and is now in a consolidation phase that analysts are trying to handicap going into 2026. [3]
Today’s broader market backdrop: “Santa rally” season, but with low conviction
Market headlines on Dec. 26 emphasize a familiar late‑December setup: major indexes wobbling near record highs after a winning streak, with investors watching whether the market can sustain the “Santa Claus rally” window. [4]
That matters for Reddit because high‑beta growth stocks often react more sharply to shifts in risk appetite—especially in the final minutes of low-liquidity sessions and into year-end rebalancing flows.
The latest Reddit-specific news cycle investors are digesting
1) Needham names Reddit a “top pick” for 2026, reiterating a $300 target
In recent coverage, Needham analyst Laura Martin has highlighted Reddit’s advertising potential—particularly Reddit’s “high-intent” communities and improving ad tools—while reiterating a $300 price target and elevating the stock as a top 2026 pick. [5]
Barron’s also notes skepticism remains in the tape: the stock’s momentum cooled after a September peak, and short interest has stayed meaningful. [6]
2) Short interest remains elevated
Multiple tracking sources put Reddit’s short positioning in the mid‑teens as a percentage of float (levels vary by methodology), reinforcing the idea that the name still carries a “crowded debate” dynamic. [7]
3) Insider transactions: what’s been reported and what it does (and doesn’t) signal
Recent filings and coverage flagged insider sales tied to Rule 10b5‑1 trading plans, including sales by COO Jennifer L. Wong (reported around $9.18 million) and a separate Form 4 involving CEO Steve Huffman. Investors typically watch these for sentiment, but 10b5‑1 plans can indicate the trades were pre-scheduled rather than reactive to headlines. [8]
4) Product and policy headlines: verification and age assurance
Two December developments stand out because they touch advertiser confidence and platform integrity:
- Verified profiles test (grey checkmark): Reuters reported Reddit started testing verified profiles to reduce impersonation and improve transparency, a move framed as not being pay‑to‑verify and not granting special privileges. Reddit also described it as a limited alpha test designed to preserve pseudonymity while helping users identify trusted accounts when it matters. [9]
- Australia under‑16 rules: Reddit said it would comply with Australia’s under‑16 social media requirements via birthdate collection for new users and an age‑prediction model for existing users, while criticizing aspects of the policy. This could affect engagement dynamics in Australia and adds compliance overhead—an area investors increasingly track across social platforms. [10]
5) New advertiser targeting: Bombora partnership for B2B audiences
On the monetization front, Reddit is leaning into performance and measurable outcomes. A Business Wire release announced that Bombora’s consent‑driven B2B audiences are now available on Reddit, aiming to help marketers reach business decision‑makers using Reddit’s discussion and intent signals. [11]
The fundamental story: Reddit’s latest reported quarter and what management guided next
The most recent official earnings release available (Q3 2025) showed a platform that is scaling revenue and profitability faster than many skeptics expected:
- Daily Active Uniques (DAUq): 116.0 million (+19% YoY)
- Revenue: $585 million (+68% YoY)
- Ad revenue: $549 million (+74% YoY)
- Net income: $163 million (diluted EPS $0.80)
- Adjusted EBITDA: $236 million (about 40% margin)
- Free cash flow: $183 million
- Cash, cash equivalents & marketable securities: about $2.226 billion [12]
For Q4 2025, Reddit guided to:
- Revenue: $655 million to $665 million
- Adjusted EBITDA: $275 million to $285 million [13]
Reuters connected that outlook to Reddit’s AI-powered ad tooling, noting the company has been using automation to improve targeting and attract more advertisers, including reporting that its active advertiser base increased substantially in Q3 (as described in Reuters’ coverage). [14]
The AI “two-sided” thesis: ads + licensing + litigation
Ads: AI tools aimed at performance and easier campaign setup
Reddit’s pitch to advertisers is increasingly about matching ads to contextually relevant conversations—a natural fit for subreddit structure—and using automation to reduce friction for marketers. Reuters has described testing a more automated AI campaign platform alongside existing AI-driven ad tools. [15]
Licensing: monetizing Reddit’s human conversations for model training
Reddit’s content is valuable because it is both high-volume and often high-intent. Reuters previously reported a Google licensing deal worth about $60 million per year (at the time of reporting), and Google described expanded partnership elements including access to Reddit’s Data API. [16]
More recent analyst commentary has pointed to over $100 million annually tied to AI-related licensing and expects that opportunity to expand—though the exact run-rate and future economics can depend on renegotiations, new partners, and legal outcomes. [17]
Litigation: defending data access and pricing power
Reddit has also pursued legal action against alleged scrapers. Reuters reported Reddit sued Perplexity in October 2025, claiming circumvention of protections to obtain data for an AI “answer engine,” and noted this followed a separate lawsuit against Anthropic earlier in 2025. [18]
Investopedia’s reporting on the Anthropic case described Reddit’s allegations of repeated scraping and its attempt to seek damages and an injunction tied to models trained on Reddit data (Anthropic disputed the claims). [19]
Why investors care: these cases aren’t only about damages—they’re also about whether Reddit can enforce pricing and permissioning around its data in an AI-first internet.
What Wall Street forecasts look like now: price targets and the 2026 debate
Analyst target sets vary by data provider, but the range is wide—a sign the Street is still modeling very different outcomes for user growth, monetization, and competitive dynamics:
- Some aggregators show a high target as high as $325 and a low target as low as $75, with midpoints in the low-to-mid $200s. [20]
- Needham’s $300 target has been repeatedly highlighted in late‑December coverage. [21]
A key point for investors: the stock’s valuation remains a frequent pushback in bullish write‑ups. Barron’s has noted Reddit trading at a premium multiple on forward expectations in some analyses—meaning the company may need to keep executing cleanly to justify upside targets. [22]
Key dates: when is the next earnings report?
Earnings calendars don’t all match, but several widely-followed market trackers place Reddit’s next report for Q4 2025 in mid‑February 2026, with some listing February 18, 2026 (after close), while others estimate an earlier window such as Feb. 11–13. Investors should confirm the date via Reddit’s Investor Relations when the company officially announces it. [23]
What could move Reddit stock next: catalysts to watch into 2026
1) Q4 results vs. guidance
Reddit’s own Q4 outlook sets a clear bar on revenue and adjusted EBITDA; the market will focus on whether the company can meet or beat guidance while sustaining user growth and advertiser momentum. [24]
2) Ad-tech expansion and measurable ROI
Partnerships like Bombora’s B2B audiences add to a broader story: Reddit wants to prove it can win budgets beyond “experimental social spend,” especially in performance categories. [25]
3) Trust features (verification) and brand safety
Verification could help Reddit attract more “real-world” entities—brands, journalists, public figures—without turning into a pay-to-play identity system. That has potential implications for misinformation control and advertiser comfort. [26]
4) AI licensing economics and legal outcomes
A favorable legal landscape could reinforce Reddit’s ability to monetize data access; a negative outcome (or weaker enforcement) could pressure the “AI licensing upside” thesis. [27]
The biggest risks investors keep citing
- Traffic and discovery risk in an AI search world: Business Insider reported concern that AI-generated search experiences could reduce referral traffic to sites like Reddit, and cited a warning that AI-based search shifts could create a more persistent headwind. [28]
- User growth deceleration in core markets: Reuters and other coverage has highlighted that growth rates can vary by geography and that the market watches DAU trends closely. [29]
- Regulatory and compliance burden: Australia’s under‑16 enforcement regime underscores how quickly regional rules can force product and policy changes. [30]
- Valuation sensitivity: With Reddit trading at growth-stock multiples, any disappointment—on ads, users, or margins—can lead to outsized moves. [31]
- Positioning/short interest: Elevated short interest can fuel volatility in either direction. [32]
What investors should know before the next session
Because it’s late Friday afternoon, the “next session” for most investors is Monday, Dec. 29, 2025 (unless you trade after-hours). Here’s what to watch between the close and the next open:
- Closing price and volume: Holiday sessions can be noisy. A late move on thin volume may not carry the same signal as a high-volume trend day. [33]
- Any after-hours filings or headlines: Insider filings, partnership announcements, and regulatory updates can hit outside the regular session. (Recent Form 4 activity is a reminder to monitor the SEC feed.) [34]
- Where we are in the seasonal window: The “Santa Claus rally” period is commonly defined as the last five trading days of December and the first two of January—often associated with lighter liquidity and sentiment-driven moves. [35]
- Earnings-date confirmation: If you’re positioning for Q4 results, treat third-party earnings calendars as estimates until Reddit confirms the date via Investor Relations. [36]
Bottom line: Reddit stock is finishing the post‑Christmas session near $225, slightly lower on the day, with investors balancing bullish 2026 calls (notably Needham’s $300 target) against valuation concerns, insider-sale headlines, and the still-unfolding shift to AI-first discovery and data economics. [37]
References
1. www.reuters.com, 2. www.cbsnews.com, 3. www.barrons.com, 4. www.marketwatch.com, 5. www.barrons.com, 6. www.barrons.com, 7. www.marketbeat.com, 8. www.sec.gov, 9. www.reuters.com, 10. www.theguardian.com, 11. www.businesswire.com, 12. investor.redditinc.com, 13. investor.redditinc.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.barrons.com, 18. www.reuters.com, 19. www.investopedia.com, 20. www.benzinga.com, 21. www.barrons.com, 22. www.barrons.com, 23. www.wsj.com, 24. investor.redditinc.com, 25. www.businesswire.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.businessinsider.com, 29. www.reuters.com, 30. apnews.com, 31. www.barrons.com, 32. www.marketbeat.com, 33. www.reuters.com, 34. www.sec.gov, 35. www.cbsnews.com, 36. www.tipranks.com, 37. www.barrons.com
