Reports on January 1, 2026, highlighted growing positive sentiment for Reddit, coinciding with news of increased institutional ownership. Ethic Inc. filed a report detailing a significant stake increase during the third quarter of 2025.
Ethic Inc. increased its stake by 447.3%, acquiring 8,539 shares. The firm now holds a total of 10,448 shares, valued at approximately $2.4 million.
This institutional confidence aligns with bullish analyst commentary for 2026. Following a strong performance in 2025, several analysts reiterated 'Buy' ratings.
Jefferies, for instance, suggested a potential 40% upside in the coming year. This optimism stems from Reddit’s strong monetization and user engagement, alongside its potential as a beneficiary of AI-driven search trends.