Latest Update on Reddit (RDDT): Stock Performance, Insider Activity, and Strengthening AI Partnerships
Recent Stock Performance
Reddit (NYSE: RDDT) has been trading lower in recent sessions, with the latest price hovering around $185. Shares have pulled back roughly 1%–2% on the day, reflecting broader volatility in tech and digital advertising names. Trading volume remains elevated relative to early-year levels, signaling continued investor attention following a strong run earlier in 2025.
CEO Insider Sale Draws Attention
A notable development came from insider activity: Reddit CEO Steve Huffman sold approximately $3.5 million in RDDT stock, according to a report from Investing.com (source). Insider sales do not necessarily indicate operational weakness, but they often prompt short‑term investor scrutiny—especially when they occur near key earnings releases or after sharp share price appreciation.
Strong Q3 Earnings Reflect Momentum
Reddit’s most recent results—in its Q3 2025 earnings release—showed substantial year‑over‑year momentum. The company reported:
- Revenue of $585 million, up 68% YoY
- Net income of $163 million, representing a 28% margin
- Gross margin of 91%
- Daily Active Uniques (DAUq) up 19% YoY to 116 million
- Adjusted EBITDA of $236 million, or 40% of revenue
These metrics were detailed in the company’s official Q3 press release on its Investor Relations site (source).
The results highlight two dominant themes for Reddit: improving monetization and strong user growth. Analysts have noted the company's ability to convert engagement into higher-yield ad formats, while expanding revenue streams outside traditional advertising.
Expanding AI Licensing Partnerships Boost Revenue
One of Reddit's most powerful growth catalysts continues to be its AI content licensing deals. Recent partnerships with companies like Google and OpenAI have meaningfully contributed to revenue, according to a report from Simply Wall St (). These agreements allow AI companies to license Reddit’s massive corpus of human conversations and topic-specific discussions to train their models.