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Tuesday's Featured Article 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 — returning about 37% in 2025 after a rally that had stalled earlier in the fall. While major social media rivals like Meta Platforms Inc. (NASDAQ: META) and alternatives such as Pinterest Inc. (NYSE: PINS) have failed to outperform the market—or even declined this year—Reddit appears to be heating up. Do you own the worst stock of 2026? [Name + Ticker]
He issued warnings for RNG before it crashed 89%, BYND before it crashed 90%, TDOC before it crashed 84%, and FVRR before it crashed 86%. Now, he's stepping forward to name the popular stock that could go down as one of the worst-performing tickers of the year. It's could be the most dangerous stock of 2026. Click here for its name and ticker, 100% free. 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 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 closed the third quarter with an impressive 116 million daily active uniques (DAUQ) — users who visited reddit.com, opened a Reddit app, or otherwise engaged with the platform in a 24‑hour period. That was up about 20% year‑over‑year (YOY), roughly matching gains in weekly active uniques (WAUQ). International DAUQ growth was particularly strong, rising roughly 31% YOY and outpacing overall engagement gains thanks to meaningful traction in markets such as France, Brazil and India. Reddit's business depends on a large, active user base. Growth in DAUQ and WAUQ strengthens its position with advertisers, who generate the bulk of the company's sales. An underused revenue opportunity is monetizing Reddit's data. With roughly 3.8 billion site visits in September alone, the company sits on valuable user insights that could become increasingly important as demand for AI-driven products grows. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement has risen, Reddit's revenue has climbed sharply. In the latest quarter, revenue reached $585 million, up more than two‑thirds year‑over‑year. International revenue grew about 74% YOY. Earnings per share (EPS) increased roughly 400% as both top and bottom lines beat analyst expectations. Guidance for the fourth quarter calls for revenue between $655 million and $665 million. Average revenue per user (ARPU) stood at $5.04 last quarter, up 41% YOY but still well below many competitors—Meta's ARPU, for example, is roughly three times higher. Increasing ARPU will require more than user growth; Reddit must better monetize the engagement it already has. The company can lift ARPU by leveraging its unique content and community engagement, and by expanding advertiser tools such as auto‑translations and indexing features—capabilities that are particularly attractive to brands 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 of 29 analysts assigning it a Buy or equivalent rating. Despite the year‑end rally, short‑term upside is unclear: with a consensus price target of $230.28, Reddit is approaching the level analysts currently project. How Reddit navigates AI adoption will be critical. So far, the company has limited user‑facing AI features, and that restraint has helped preserve Reddit's appeal as a source of human‑generated content. If Reddit continues to strike that balance—offering robust, community‑driven content while expanding useful tools for users and advertisers—it could maintain momentum and continue appreciating into 2026 and beyond.
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