NEW YORK, December 30, 2025, 06:10 ET — Premarket.
- Reddit shares were up about 0.5% in premarket trading after a 3.9% rise in the prior session.
- Needham reiterated its Buy rating on the stock, keeping a $300 price target.
- A filing showed CTO Christopher Slowe sold shares under a pre-arranged trading plan.
Reddit’s shares were up about 0.5% at $235.70 in premarket trading on Tuesday, after jumping 3.9% to close at $234.65 in the previous session.
The move followed renewed focus on Reddit’s role in AI-driven search, after Needham reiterated a Buy rating and kept its $300 price target on Monday, according to GuruFocus.
Needham analyst Laura Martin argued that as “referral traffic” — the clicks that send users from one site to another — shrinks, the value shifts to where AI-generated answers point readers. “As overall referral traffic shrinks, the platforms that AI answers cite (like Reddit) become increasingly valuable, we believe,” Martin wrote. Investors.com
The timing matters because markets are navigating a holiday-thinned week in which rates-sensitive growth stocks can swing sharply on any shift in interest-rate expectations. Investors are also watching for the release of minutes from the Federal Reserve’s Dec. 9-10 meeting at 2 p.m. EST.
Separately, a Form 4 filing on Monday showed Reddit Chief Technology Officer Christopher Brian Slowe sold a total of 14,000 shares on Dec. 22 at prices ranging from $231.49 to $240.10, and reported holding 171,694 shares directly after the transactions.
The filing said the sales were made under a Rule 10b5-1 plan — a pre-arranged trading plan that can allow executives to buy or sell shares on a set schedule.
Reddit outperformed a softer broader market on Monday, when major U.S. indexes retreated as heavyweight tech names fell, Reuters reported. Reuters also flagged that trading volumes are expected to remain light with U.S. markets shut on Thursday for New Year’s Day.
Reddit has leaned into the pitch that its user discussions are becoming more valuable in a world of AI summaries. Needham, as summarized by TipRanks, pointed to studies suggesting Reddit accounts for roughly 20% to 40% of citations inside AI-generated answers — a shift that could reward platforms that get referenced even when users don’t click through.
The company has highlighted its scale: as of Sept. 30, it had 116 million daily active uniques, more than 443 million weekly active uniques, 100,000-plus active communities and 23 billion-plus posts and comments.
In its most recent quarterly report, Reddit said third-quarter revenue rose 68% year-on-year to $585 million, including ad revenue of $549 million, and it posted adjusted EBITDA of $236 million. It forecast fourth-quarter revenue of $655 million to $665 million and adjusted EBITDA of $275 million to $285 million.
At current levels, the stock’s valuation keeps it sensitive to any change in the growth outlook. Reddit’s shares trade at about 123 times earnings, based on the price-to-earnings ratio — a common yardstick for how much investors are paying for each dollar of profit.
Beyond the Fed minutes later in the day, traders have a busy U.S. calendar to navigate: the Dallas Fed’s Texas Retail Outlook Survey is scheduled for 10:30 a.m. ET, while weekly jobless claims are scheduled for release on Wednesday, Dec. 31 at 8:30 a.m. ET due to the holiday-week adjustment.
