Reddit (NYSE:RDDT) Sees Large Volume Increase After Earnings Beat

Shares of Reddit Inc. (NYSE:RDDT) saw unusually-strong trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 9,543,749 shares were traded during trading, an increase of 84% from the previous session’s volume of 5,190,021 shares.The stock last traded at $148.9220 and had previously closed at $151.05.

The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.28. The business had revenue of $725.61 million for the quarter, compared to the consensus estimate of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 22.03%. The company’s quarterly revenue was up 69.7% on a year-over-year basis. During the same period last year, the firm earned $0.36 earnings per share.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 results and raised guidance — Reddit reported Q4 EPS and revenue above estimates and forecast Q1 revenue above Street expectations, a key reason the stock rallied after the print. Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion share buyback announced — management authorized a sizable repurchase program that should support EPS and reduce float over time. Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Analysts reacting — several firms raised price targets and reaffirmed buy ratings after the quarter, signaling continued bullish institutional views. These Analysts Revise Their Forecasts On Reddit Following Q4 Results
• Neutral Sentiment: AI and product roadmap could drive longer-term ad monetization — management highlighted AI search and ad tools as growth drivers, but monetization timelines remain multi-quarter. Reddit looks to AI search as its next big opportunity
• Neutral Sentiment: M&A appetite announced — Reddit told analysts it’s scouting adtech and other buys that either scale across Reddit or grow users; strategic but uncertain near-term impact. Reddit says it’s looking for more acquisitions in adtech and elsewhere
• Negative Sentiment: CEO insider selling reported — recent disclosure of a multi-million-dollar sale by the CEO has been cited as a near-term selling catalyst. Insider Selling: Reddit (NYSE:RDDT) CEO Sells $3,297,240.00 in Stock
• Negative Sentiment: Transparency change: company plans to stop disclosing logged‑in vs. logged‑out user counts in 2026 — investors may view that as reduced visibility into engagement trends. Reddit (RDDT) plans to stop disclosing logged-in and logged-out user numbers in 2026
• Negative Sentiment: Valuation and profit-taking — after the post-earnings jump, some investors appear to be locking in gains amid divergent DCF/valuation views and very high intraday volume, pressuring the share price. Reddit (RDDT) Valuation Check As Shares Lag And DCF Views Sharply Diverge

Analyst Ratings Changes

A number of brokerages have commented on RDDT. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Reddit in a research report on Friday. China Renaissance initiated coverage on Reddit in a research report on Tuesday, December 9th. They set a “buy” rating and a $300.00 price objective on the stock. Argus set a $300.00 target price on shares of Reddit in a report on Friday, January 9th. Robert W. Baird set a $200.00 target price on shares of Reddit in a research note on Friday. Finally, Oppenheimer dropped their price target on shares of Reddit from $300.00 to $250.00 and set an “outperform” rating for the company in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $241.31.

Insider Activity at Reddit

In related news, insider Benjamin Seong Lee sold 55,005 shares of the firm’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $221.21, for a total transaction of $12,167,656.05. Following the completion of the transaction, the insider directly owned 62,608 shares of the company’s stock, valued at approximately $13,849,515.68. This trade represents a 46.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $220.28, for a total transaction of $3,965,040.00. Following the completion of the sale, the chief executive officer owned 448,576 shares in the company, valued at approximately $98,812,321.28. The trade was a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 523,511 shares of company stock worth $114,237,285 in the last three months. Insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently made changes to their positions in the company. Raiffeisen Bank International AG bought a new stake in Reddit in the 3rd quarter worth approximately $25,000. GW&K Investment Management LLC purchased a new position in shares of Reddit in the third quarter valued at $30,000. Cornerstone Planning Group LLC increased its position in Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after purchasing an additional 135 shares during the last quarter. LOM Asset Management Ltd bought a new stake in Reddit in the fourth quarter worth $33,000. Finally, Financial Perspectives Inc purchased a new stake in Reddit during the second quarter valued at $34,000.

Reddit Price Performance

The firm has a market cap of $26.39 billion, a P/E ratio of 53.16, a price-to-earnings-growth ratio of 1.05 and a beta of 2.17. The company’s 50-day simple moving average is $221.22 and its 200 day simple moving average is $214.67.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.