RDDT Stock Breaks $130 Support and Heads for $80 as Leadership Selling Spooks Investors

Quick overview

Reddit Inc. stock is under pressure as insider selling and weakening sentiment overshadow strong earnings and user growth.

Stock Decline Accelerates Below Key Support

Shares of Reddit Inc. have resumed their downward trend after a period of consolidation, falling more than 11% and breaking below the critical $125 support level. The stock had previously stabilized above $130 for over a month, but renewed selling pressure has shifted momentum back to the downside.

This breakdown is technically significant, as it opens the door for further declines if buyers fail to step in. The move also reflects a broader deterioration in sentiment toward growth and tech stocks, amplifying the impact of company-specific developments.

Insider Selling Weighs on Investor Confidence

A key trigger behind the latest selloff has been notable insider activity. Chief Technology Officer Christopher Brian Slowe sold 9,500 shares at an average price of $141.28, totaling over $1.3 million.

In addition, both senior leadership figures and major shareholders have reduced their positions. Reports indicate that the Chief Operating Officer also trimmed holdings, while institutional investor Focus Financial Network cut its stake.

Such coordinated selling has raised concerns about internal confidence in the company’s near-term outlook. While insider sales can occur for various reasons, markets often interpret them as a negative signal—especially when they coincide with weakening price action.

RDDT Chart Weekly -Finding Support at the 50 SMA

Reddit was bullish until January 2026, but the momentum has shifted since then. After reaching a record high of $283 in September, shares tumbled more than $110 to dip below $180. Technical support emerged at the 50-week SMA (yellow), leading to a sharp rebound of 28% over just two weeks. But the recovery was short-lived and the price tumbled lower to $130 where it found support at the 100 SMA (green). However the 100 SMA has been broken this week which opens the door for 2025 lows at around $80.

Strong Earnings Fail to Support the Stock

The recent decline comes despite fundamentally strong performance. Reddit delivered an impressive fourth-quarter result, with revenue reaching $726 million—up 70% year-over-year—while earnings per share came in at $1.24, beating expectations.

User growth also remained robust, with daily active users increasing by 19%, reinforcing the platform’s expanding reach and engagement.

For the full year 2025, the company generated approximately $530 million in net income and announced a $1 billion share buyback program, signaling confidence in its long-term financial position.

• Revenue: $726 million (70% year-over-year increase).
• Earnings Per Share (EPS): $1.24, beating the 94 cents forecast.
• Net Income: $252M for Q4 2025.
• Daily Active Users (DAUq): 121.4 million (19% increase YoY).
• Free Cash Flow: $264 million in Q4, totaling $684M for the year. 

• Share Buyback: Authorized a $1 billion share repurchase program, say Reddit Investor Relations.
• Q1 2026 Guidance: Projected revenue between $595M and $605M.
• Growth Factors: Growth is driven by increased ad demand and high user engagement.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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