Key Takeaways
- Reddit (RDDT) dropped approximately 10% Thursday, reaching an intraday low of $128.11
- CTO Christopher Slowe liquidated 9,500 shares valued at approximately $1.34M on March 23rd
- COO Jennifer Wong offloaded more than 39,000 shares totaling roughly $6.6M in multiple sales
- Wall Street analysts cite concerns about weakening advertising revenue feedback and decelerating user expansion
- RDDT has declined nearly 40% in 2025, positioned beneath both its 50-day and 200-day moving averages
Reddit experienced a significant selloff Thursday as revelations emerged regarding substantial insider share liquidations by two senior executives, compounding what has already been a challenging year for the social networking company.
Shares plummeted as much as 10.86% during intraday trading, bottoming at $128.11. Trading activity registered approximately 2.4 million shares, representing roughly 56% below the company’s typical daily volume of 5.5 million shares.
Chief Technology Officer Christopher Slowe disposed of 9,500 shares on March 23rd at a mean price of $141.28, generating proceeds of approximately $1.34 million. This transaction reduced his direct ownership position by nearly 20%, leaving him with 38,413 remaining shares.
COO Jennifer Wong demonstrated even greater selling activity. She offloaded 5,658 shares on March 18th priced at $143.42, followed by an additional 33,507 shares during the same trading session at $143.41. The combined transactions yielded approximately $5.6 million. Post-sale, Wong maintains ownership of roughly 1.09 million shares valued at over $156 million.
Both transactions were formally reported through mandatory SEC disclosure filings.
Wall Street Sentiment Shifts
The executive stock sales represent just one headwind facing the company. Wall Street analysts have raised red flags regarding disappointing feedback from Reddit’s advertising business operations, while mounting concerns center on decelerating user engagement metrics and traffic momentum.
Cantor Fitzgerald slashed its price objective from $240 down to $170, maintaining a “neutral” stance. Goldman Sachs similarly reduced its target from $236 to $206, also preserving a “neutral” rating.
However, not all analysts have grown pessimistic. Needham continues to recommend the stock with a “buy” rating and $300 price target, and the overall analyst consensus remains at “Moderate Buy” with a mean price objective of $242.19.
That consensus target represents a considerable premium to current trading levels.
The equity’s 50-day moving average stands at $159.88 while its 200-day average rests at $200.15. RDDT currently trades beneath both technical benchmarks and has surrendered nearly 40% of its value year-to-date.
Reddit can point to a recent quarterly performance that exceeded expectations. In its most recent earnings disclosure on February 5th, the platform delivered EPS of $1.24 compared to the Street consensus of $0.96. Revenue registered at $725.61 million, representing 69.7% year-over-year growth and surpassing the $665.80 million analyst estimate.
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 coefficient of 2.40 — indicating the stock demonstrates higher volatility relative to the overall market.
Wall Street analysts collectively forecast Reddit will generate EPS of $1.12 for the current fiscal year.
From a technical analysis perspective, conditions remain challenged. The stock presently displays a “Strong Sell” designation according to momentum indicators.
Shares concluded the previous trading session at $139.63 before Thursday’s downturn.
