Key Takeaways
- Reddit (RDDT) declined approximately 10% during Thursday’s trading, bottoming at $128.11
- Chief Technology Officer Christopher Slowe offloaded 9,500 shares valued at approximately $1.34 million on March 23rd
- Chief Operating Officer Jennifer Wong dumped more than 39,000 shares totaling roughly $6.6 million in multiple sales
- Wall Street analysts point to disappointing advertising revenue feedback and decelerating user expansion
- Shares have plummeted nearly 40% in 2025, trading significantly beneath both 50-day and 200-day moving averages
Shares of Reddit experienced a significant downturn Thursday following revelations that two senior executives conducted substantial stock sales, compounding an already challenging year for the social media company.
The platform’s shares declined as much as 10.86% during the session, reaching an intraday low of $128.11. Approximately 2.4 million shares changed hands, representing roughly 56% less than the typical daily trading volume of 5.5 million.
Christopher Slowe, serving as Chief Technology Officer, disposed of 9,500 shares at an average execution price of $141.28 on March 23rd, generating proceeds of approximately $1.34 million. This transaction reduced his direct ownership position by close to 20%, leaving him with 38,413 remaining shares.
Meanwhile, Chief Operating Officer Jennifer Wong conducted even larger transactions. She offloaded 5,658 shares on March 18th at $143.42 per share, followed by an additional sale of 33,507 shares that same day at $143.41. The combined proceeds from both transactions exceeded $5.6 million. After these dispositions, Wong maintains ownership of approximately 1.09 million shares valued at more than $156 million.
Both executive transactions were properly reported through mandatory SEC disclosure filings.
Wall Street Sentiment Weakening
The executive stock sales represent just one headwind facing the company. Financial analysts have highlighted concerning feedback from Reddit’s advertising sales operations, while questions intensify regarding plateauing user activity and traffic metrics.
Cantor Fitzgerald slashed its price objective from $240 down to $170, accompanied by a downgrade to “neutral.” Goldman Sachs similarly reduced its target from $236 to $206, maintaining a “neutral” stance.
However, not all analysts have grown pessimistic. Needham continues recommending the stock with a “buy” rating and $300 price target, while the overall analyst consensus sits at “Moderate Buy” with an average price objective of $242.19.
That consensus target represents substantial upside from current trading levels.
The stock’s 50-day moving average currently stands at $159.88, while the 200-day average rests at $200.15. RDDT is trading beneath both technical benchmarks and has surrendered nearly 40% of its value year-to-date.
Reddit can point to a strong recent quarterly performance. When reporting results on February 5th, the platform delivered earnings per share of $1.24, surpassing the Street’s $0.96 estimate. Revenue reached $725.61 million, marking 69.7% year-over-year growth and exceeding the $665.80 million consensus forecast.
Financial Metrics
The social media platform maintains a market capitalization of approximately $24.6 billion, trades at a price-to-earnings multiple of 49.14, and exhibits a beta of 2.40 — indicating the stock typically experiences greater volatility compared to the broader market.
Analyst projections collectively anticipate earnings per share of $1.12 for the current fiscal year.
From a technical analysis perspective, the outlook remains challenging. The stock currently generates a “Strong Sell” indication according to technical trading metrics.
Shares settled at $139.63 in the previous trading session before Thursday’s decline.
