NEW YORK, Jan 14, 2026, 20:52 EST — Market closed.
- Shares of Reddit fell about 2.5% in after-hours trading, capping off a choppy day.
- Evercore ISI launched coverage with an Outperform rating and set a $320 price target. Morgan Stanley, on the other hand, bumped its target up to $265.
- A recent SEC filing showed that CFO Andrew Vollero offloaded shares via a prearranged 10b5-1 plan.
Reddit (RDDT) shares dipped about 2.5% in late Wednesday trading, as investors weighed positive analyst reports against a recent insider-sale filing. The stock last traded at $252.38, down $6.58 from the previous close, with a session range between $246.85 and $259.62.
U.S. markets remain closed until Thursday, but what’s happening now is crucial. Reddit has become a focal point for gauging if ad-driven internet stocks can truly capitalize on the AI hype. New coverage tends to trigger quick buying frenzies, only to be met with fast profit-taking shortly after.
Evercore ISI launched coverage this week with an Outperform rating and a $320 price target, pointing to Reddit’s ability to increase average revenue per user and grow its advertising business. The firm forecasts revenue rising 30%-40% annually over the next three years, with EBITDA expanding between 40% and 50%, according to a note referenced by The Fly.
Morgan Stanley raised its price target to $265 from $250, keeping an Overweight rating intact. In a sector report, the firm suggested 2026 could mirror 2025’s trends, spotlighting firms that generate high returns on invested capital (ROIC) via generative AI or GPU-focused technology.
CFO Andrew Vollero sold 3,974 Class A shares in multiple trades on Jan. 9 and Jan. 13, with prices ranging from $260 to $263. The Form 4 filing reveals these sales occurred under a Rule 10b5-1 plan, established on Sept. 11, 2025. Following the transactions, Vollero retains 251,644 shares.
Planned sales rarely change the overall story, yet they can intensify pressure on a volatile stock trying to find its footing. This holds especially true when traders debate whether the buzz stems from “AI monetisation” or simply basic ad execution.
Evercore’s Mark Mahaney sees a “significant opportunity for Reddit to gap up its average revenue per user,” citing new offerings like Max campaigns. He also highlights Reddit’s AI-powered data licensing as an emerging revenue source, adding to its core advertising business. Investors.com
Reddit’s content is drawing attention beyond advertising, catching the eye of AI companies hunting for training data. The firm has secured licensing deals with Google and OpenAI, Reuters reports.
Investors are drawing some grim parallels. Smaller ad platforms like Snap and Pinterest have shown how quickly sentiment can drop when marketers pull back on spending. The biggest players, by contrast, lean on automation and scale to soften the blow.
The bullish case hinges on a smooth ride: more advertisers, better tools, steady user engagement, and zero fresh controversies around moderation or data policies. Should the upcoming quarterly report disappoint, it will expose just how much of Reddit’s value rests on optimistic expectations rather than solid performance.
Nasdaq has set Feb. 11 as the tentative date for Reddit’s next earnings report. Investors are watching closely for any updates to the schedule, eager for clearer signs that ad tools and licensing revenue are turning into steady income streams.
