New York, Feb 6, 2026, 05:32 EST — Premarket.
Reddit shares were down about 1.1% in premarket trading on Friday at $151.05, after finishing the prior session at $152.70.
The early pullback matters because Reddit has become a read-through on whether smaller social platforms can keep squeezing more money out of ads without slowing user growth. Traders have also been quick to fade post-earnings pops in internet names this season when guidance looks “good” but the margin for error stays thin.
The company’s pitch is still straightforward: sell ads where people actually talk, then use new tools to make those ads easier to buy and manage. The next few sessions will show whether that story can carry the stock, or just add to the chop.
Reddit said late Thursday that fourth-quarter revenue rose 70% to $726 million, with ad revenue up 75% to $690 million. Daily Active Uniques (DAUq), its count of unique daily visitors, increased 19% to 121.4 million and diluted earnings per share came in at $1.24. It forecast first-quarter revenue of $595 million to $605 million and adjusted EBITDA — a profit measure that strips out interest, taxes and depreciation — of $210 million to $220 million, and its board authorised a share repurchase program of up to $1 billion; CEO Steve Huffman said the next phase would put “real people and conversations at the center.”
Shares rose about 4% after-hours following the update, and Chief Operating Officer Jen Wong said on the analyst call that Reddit’s active advertiser base climbed more than 75% in the quarter. Reddit has been using AI tools such as an ad copywriter and an image auto-crop feature, while testing “Max” campaigns that automate bids and creative choices — a move that steps up competition with Meta Platforms. Emarketer senior director Jeremy Goldman said the quarter showed how “product momentum, advertiser demand, and user engagement” can reinforce one another. (Reuters)
Still, the bar just moved higher. If ad demand cools or user growth stumbles, the stock could give back gains fast, especially with larger rivals competing hard for brand budgets.
Investors will be watching whether the strength came from a broad set of advertisers or a narrower group spending more, and how quickly Reddit can scale the tools it is pitching to marketers. Buyback timing matters, too, but the market usually wants the operating trend first.
