New York, Feb 2, 2026, 16:38 EST — After-hours
- Reddit shares dropped 1.7% by the close, before climbing slightly in after-hours trading
- Investors are gearing up for the company’s quarterly report due later this week
- Options markets are signaling a sharp move ahead of the results
Reddit shares slipped 1.73% to close at $177.15 on Monday but regained momentum after hours, edging up 0.8% to $178.57 as investors positioned themselves ahead of the quarterly earnings announcement. (StockAnalysis)
The setup matters because Reddit’s upcoming report is the next immediate test for a stock marked by sharp swings, with investors eager for new clues on advertising demand and user growth. That anticipation has attracted short-term money, even as the broader market held steady.
Options pricing hints at a more volatile session ahead of the release. The 30-day implied volatility hit about 82%, signaling traders expect price swings close to 20% around earnings. (Barchart)
The broader market ended Monday on a positive note following a turbulent night, with the Dow climbing 1.1% and the S&P 500 inching up 0.5%. The Nasdaq added 0.6%. (AP News)
Evercore ISI analysts held firm on their “Outperform” rating with a $320 price target, backing Wall Street’s revenue forecast of roughly $667 million. They highlighted close attention to global daily active user trends and ad demand. The firm also flagged an EBITDA estimate of $288 million—a key cash-profit metric that strips out interest, taxes, and non-cash items—as a crucial yardstick. (Investing)
Investors care less about this quarter’s headline profit and more about the overall direction. Reddit’s main revenue driver remains advertising, but attention is turning to how fast newer streams, like data-related products, can grow without rapidly increasing costs.
The risk is straightforward: expectations are high, and the stock already reflects strong growth. If ad demand weakens, user growth slows, or costs rise more than expected, the shares could take a hit—especially since options markets are bracing for a major move.
Traders are set to see if the post-close bounce sticks around for Tuesday’s session and how the options market adjusts as the results near.
Reddit plans to report its fourth-quarter and full-year 2025 earnings after the market closes Thursday. The company will follow up with a conference call at 4:30 p.m. ET. (Redditinc)
