Reddit (NYSE:RDDT) Sees Strong Trading Volume After Earnings Beat

Shares of Reddit Inc. (NYSE:RDDT) saw unusually-high trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 9,543,749 shares changed hands 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 EPS for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. During the same quarter in the previous year, the company posted $0.36 earnings per share. The firm’s revenue was up 69.7% compared to the same quarter last year.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q4 beat and strong guidance — Reddit reported Q4 EPS and revenue well above estimates, posted materially higher profits and gave Q1 revenue guidance above Street expectations; management highlighted AI tools boosting ad monetization. Reuters: Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion buyback announced — Board approved a $1B share repurchase program, which reduces float and can support EPS and the stock price over time. BusinessWire: Reddit announces $1B repurchase program
• Positive Sentiment: Analyst upgrades and higher price targets — Needham reaffirmed a buy and set a $300 PT; B. Riley raised its PT to $250 and keeps a buy rating, signaling strong sell‑side conviction after the quarter. Benzinga: Needham reaffirms buy TickerReport: B. Riley raises price target
• Positive Sentiment: Longer-term product tailwinds — Management flagged AI-powered search and integrated AI features as a new monetization avenue, which investors see as expanding TAM and advertiser demand. TechCrunch: Reddit looks to AI search
• Neutral Sentiment: Valuation debate persists — Several pieces note divergent DCF views and that shares still trade at a high multiple, underscoring differing analyst assumptions about growth and margins. Yahoo Finance: Valuation check
• Neutral Sentiment: Metrics disclosure change — Reddit plans to stop reporting logged‑in vs logged‑out user counts in 2026; that reduces one public engagement metric and may make future user-trend analysis harder. Shacknews: Reddit discontinues logged-in vs logged-out reporting
• Negative Sentiment: Insider selling pressure — CEO stock sales (~$3.3M) were reported and have been cited as a reason for intraday weakness and recent share pulls, drawing investor attention and short‑term selling. AmericanBankingNews: Insider selling
• Negative Sentiment: Short-term pullback coverage — Some outlets highlighted a pullback ahead of earnings driven by the insider sale and volatility, which can amplify short-term downside despite the strong quarter. Schaeffer’s Research: Pullback ahead of earnings

Analysts Set New Price Targets

A number of brokerages recently weighed in on RDDT. Oppenheimer reiterated an “outperform” rating and set a $250.00 price target on shares of Reddit in a research note on Friday. Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Reddit in a research note on Friday. Bank of America raised their price target on Reddit from $180.00 to $210.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. Jefferies Financial Group upped their price objective on Reddit from $300.00 to $325.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Finally, UBS Group set a $265.00 price objective on Reddit in a research report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $241.48.

Insider Transactions at Reddit

In other news, CTO Christopher Brian Slowe sold 14,000 shares of the stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $212.61, for a total transaction of $2,976,540.00. Following the completion of the transaction, the chief technology officer directly owned 167,694 shares of the company’s stock, valued at approximately $35,653,421.34. This represents a 7.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Benjamin Seong Lee sold 3,320 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $260.22, for a total value of $863,930.40. Following the completion of the sale, the insider directly owned 62,608 shares of the company’s stock, valued at $16,291,853.76. This represents a 5.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 523,511 shares of company stock valued at $114,237,285 over the last 90 days. Insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Banque Cantonale Vaudoise lifted its holdings in Reddit by 249.2% in the fourth quarter. Banque Cantonale Vaudoise now owns 6,789 shares of the company’s stock valued at $1,561,000 after acquiring an additional 4,845 shares during the period. Cullen Frost Bankers Inc. increased its holdings in shares of Reddit by 0.3% in the 4th quarter. Cullen Frost Bankers Inc. now owns 35,139 shares of the company’s stock valued at $8,077,000 after purchasing an additional 102 shares in the last quarter. Harvest Portfolios Group Inc. lifted its stake in shares of Reddit by 4,883.7% in the fourth quarter. Harvest Portfolios Group Inc. now owns 225,064 shares of the company’s stock valued at $51,735,000 after purchasing an additional 220,548 shares during the period. PNC Financial Services Group Inc. boosted its holdings in Reddit by 7.4% during the fourth quarter. PNC Financial Services Group Inc. now owns 6,052 shares of the company’s stock worth $1,391,000 after buying an additional 415 shares in the last quarter. Finally, Tredje AP fonden grew its position in Reddit by 55.0% during the fourth quarter. Tredje AP fonden now owns 130,596 shares of the company’s stock worth $30,020,000 after buying an additional 46,320 shares during the period.

Reddit Price Performance

The company has a market capitalization of $28.42 billion, a price-to-earnings ratio of 85.97, a price-to-earnings-growth ratio of 1.06 and a beta of 2.17. The firm’s 50-day simple moving average is $222.78 and its two-hundred day simple moving average is $214.72.

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.