New York, Jan 28, 2026, 07:31 EST — Premarket
- Reddit shares dipped in premarket trade following a steep fall in the previous session.
- A Cleveland Research analyst pointed to indicators suggesting ad growth may slow as 2026 approaches.
- SEC filings reveal that Reddit’s CTO and COO recently sold shares, following pre-established trading plans.
Reddit Inc shares slipped roughly 1% in premarket trading Wednesday, hinting at a jittery start following Tuesday’s drop, which pushed the stock down to $196.30.
Timing is crucial. Reddit, known for its high beta, has swung sharply with shifts in ad demand and user behavior. Investors are positioning themselves ahead of its earnings report due in early February.
A new note from Cleveland Research triggered the latest wave of selling, raising questions about the company’s ability to turn brand interest into steady ad spending as it faces tough comparisons.
Cleveland Research analyst Ross Walthall reported that his latest checks show a “less optimistic” view on 2026 growth. He pointed to lowered forecasts from major U.S. agencies, while some smaller and European partners remained more stable. Investing.com
The firm now forecasts 2026 revenue growth at 36%, reaching about $2.9 billion—falling short of the 39.1% consensus estimate near $3.0 billion, Investing.com reported. Walthall highlighted a decline in the share of partners surpassing return-on-investment targets and emphasized that wider adoption of a conversion API—a tool that links sales directly to ads—will be crucial for boosting direct-response spending.
He pointed out competition for 2026 budgets coming from TikTok and Snap, along with possible pressure from experimental ad dollars shifting to ChatGPT.
Additional regulatory filings stirred the buzz. A Form 4 dated Jan. 26 revealed CTO Christopher Slowe exercised options and offloaded 14,000 shares on Jan. 22. The filing clarified these sales occurred under a Rule 10b5-1 plan — a pre-set trading arrangement.
Another Form 4 reveals that Chief Operating Officer Jennifer Wong offloaded 27,159 shares directly and an additional 12,008 shares via a trust, all on Jan. 20. These moves were carried out under a 10b5-1 plan.
Reddit slipped 8.11% on Tuesday, moving against the broader market’s upward trend, according to a Zacks note cited by Nasdaq. The report pegged consensus estimates for Feb. 5 at earnings per share of $0.96 and revenue near $667.6 million. It also highlighted a forward P/E ratio around 57, marking a premium compared to its industry peers.
Insider selling isn’t always a one-way street. These trades were executed under pre-established plans, and a solid earnings report or positive guidance could quickly shift the crowded story back toward the company’s advantage.
Reddit’s next major event lands on Feb. 5, with fourth-quarter and full-year 2025 results set to drop after the market closes. The company will follow up with a conference call at 4:30 p.m. ET. Investors will focus on any updates around ad revenue growth, user numbers, and enhancements to advertiser tools and measurement.
