Reddit reported Q4 2025 revenue of $725.61 million, representing a 69.7% year-over-year increase. Earnings per share reached $1.24, exceeding analyst estimates. The company issued Q1 2026 revenue guidance of up to $605 million and authorized a $1 billion share buyback program.
The stock experienced sell-the-news volatility, initially dropping nearly 8%. The current price of $146.05 reflects a 3.31% decline, extending a seven-day downtrend from the January 28, 2026, high of $193.14.
Investor sentiment cooled following an FTC inquiry into AI data licensing under Section 5. Reddit also announced it will cease reporting logged-in user metrics. These company-specific risks overshadowed a 1.77% rebound in the S&P 500 as the tech sector faces broader concerns regarding AI capital expenditures.