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For Your Education and Enjoyment TL;DR: Why Reddit is the New Growth Stock to BeatWritten by Nathan Reiff. Published 12/19/2025. 
Key Points - Reddit's revenue and user base have grown at a fast pace in recent quarters.
- Strong performance internationally has helped to fuel these gains, thanks to add-on features like translation tools and more.
- The company's average revenue per user remains low compared to rivals, suggesting that Reddit could continue to boost its appeal to advertisers going forward.
Reddit Inc. (NYSE: RDDT) is ending the year on a high note, having returned about 37% in 2025, relaunching a rally that had appeared to flatline earlier in the fall. The online content-sharing platform is showing signs of rapid growth, with its user base, earnings, and engagement features all expanding quickly. At a time when major social media rivals like Meta Platforms Inc. (NASDAQ: META) and even smaller alternatives such as Pinterest Inc. (NYSE: PINS) have struggled to outperform the market or have declined this year, Reddit appears to be heating up. While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> What might 2026 have in store for the popular aggregation site, and will it remain the growth stock to beat? A closer look at user engagement, advertising momentum, and the company's capacity for further revenue improvement reveals Reddit's potential going forward. User Engagement Fuels Potential Growth One of Reddit's brightest spots this year has been its engagement gains. The company ended the third quarter with an impressive 116 million daily active uniques (DAUQ) — users who visited a page on reddit.com, opened a related app, or otherwise engaged with one of its platforms within 24 hours. This represented about 20% year-over-year (YOY) growth, roughly matching the increase in weekly active uniques (WAUQ). Reddit's international DAUQ growth reached about 31% YOY, outperforming overall engagement gains and driven by strong adoption in France, Brazil and India. Reddit's business depends on a large user base, and growth in both DAUQ and WAUQ provides meaningful support for future success. With more users, Reddit can attract greater interest from advertisers, who generate the majority of the company's sales. Another underexploited revenue opportunity is data. With roughly 3.8 billion site visits in September alone, Reddit sits on extensive user data that could become increasingly valuable as AI applications expand. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement has risen, Reddit's revenue has followed. In the latest earnings, revenue reached $585 million, up more than two-thirds year over year. International revenue was particularly strong, rising 74% YOY. Earnings per share (EPS) climbed about 400% over the same period, and both top and bottom lines comfortably beat analyst expectations. Guidance for the final quarter placed revenue between $655 million and $665 million. Measured on a per-user basis, Reddit still has work to do. As of the last quarter, average revenue per user (ARPU) was $5.04, up 41% YOY but still well below many rivals—Meta's ARPU, for example, is roughly three times higher. Expanding the user base helps, but Reddit will need additional monetization strategies to close that gap. The company has room to lift ARPU by better leveraging its unique content and community engagement, and by expanding tools such as auto-translations and indexing—capabilities that could be especially attractive to advertisers seeking diverse, active audiences. AI and Human Content Balance Key to 2026 Outlook Analysts are generally optimistic about Reddit heading into the new year, with 18 out of 29 assigning it a Buy or equivalent rating. After its year-end rally, Reddit is approaching the consensus price target of $230.28, suggesting limited near-term upside based on current analyst expectations. How Reddit navigates AI will be crucial for future growth. So far the company has limited AI features for end users and emphasizes human-generated content—an offering that has resonated with a broadening user base. If Reddit can maintain a balance of robust, community-driven content and useful tools while improving monetization, it could continue to appreciate into 2026 and beyond.
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