Reddit shares dropped 3.7% to $244.56 amid profit-taking and sensitivity to high valuation metrics, coinciding with the disclosure that Chief Legal Officer Benjamin Seong Lee sold 31,250 shares for approximately $8.1 million under a pre-set plan.
- Piper Sandler reiterated an Overweight rating with a $290 price target, citing potential upside from data licensing revenue that could reach $400 million by 2027.
- Cantor Fitzgerald initiated coverage with a Neutral rating and a $240 target, acknowledging Reddit's strong digital media position but noting a more balanced risk-reward profile.
- The stock, which has gained 8.74% over the past month, traded roughly flat after hours at $244.97 and currently carries a high forward P/E of 65.84.