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Additional Reading from MarketBeat TL;DR: Why Reddit is the New Growth Stock to BeatWritten by Nathan Reiff. Originally Published: 12/19/2025. 
In Brief - 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 after relaunching a rally that had flatlined earlier in the fall. The online content-sharing platform is showing signs of rapid growth: its user base, earnings, and engagement features are all expanding quickly. At a time when major social media rivals like Meta Platforms Inc. (NASDAQ: META) — and even lesser-known alternatives like Pinterest Inc. (NYSE: PINS) — have struggled to outperform the market or have declined this year, Reddit appears to be heating up. What $1,000 could become after the bounce
The last time altcoins were this beaten down… the last time fear was this high… the last time everyone had given up… that's when the biggest rallies started. Get the "Crypto Retirement Blueprint" now What might 2026 hold for the popular aggregation site, and will it remain the growth stock to beat? A closer look at user engagement, advertising momentum, and revenue upside highlights Reddit's potential going forward. User Engagement Fuels Potential Growth One of Reddit's brightest spots this year has been its strong engagement gains. The company ended the third quarter with an impressive 116 million daily active uniques (DAUQ)—users who visited reddit.com, opened a related app, or otherwise engaged with the platform within a 24-hour period. This represents about 20% year-over-year (YOY) growth, roughly matching gains in weekly active uniques (WAUQ). International DAUQ growth reached roughly 31% YOY, outpacing overall engagement gains thanks to major progress in France, Brazil, and India. Reddit's business depends on scale; growth in DAUQ and WAUQ strengthens its position with advertisers, who drive the majority of the company's revenue. Data also represents a relatively untapped revenue opportunity. With about 3.8 billion site visits in September alone, Reddit has vast user data that are increasingly valuable amid the ongoing AI boom. Revenue and Earnings Climb, But ARPU Trails Competitors As more users engage with its platform, Reddit's revenue has surged. 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) jumped roughly 400% as both the top and bottom lines comfortably beat analyst expectations. Guidance for the final quarter put revenue between $655 million and $665 million. Average revenue per user (ARPU) was $5.04 in the last quarter, up 41% YOY but still well below many rivals—Meta's ARPU, for example, is roughly three times higher. Improving ARPU will require more than user growth. There is room to boost ARPU by better leveraging Reddit's unique content and community engagement, and by expanding tools such as auto-translation and indexing features—capabilities that are 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 the year-end rally, short-term upside is unclear—at a consensus price target of $230.28, Reddit is already approaching the level analysts expect. A key to further appreciation will be how Reddit navigates AI. So far, the company has limited AI's presence on the user-facing side, which has helped preserve the appeal of human-generated content to a growing audience. If Reddit maintains this balance—offering robust content and useful tools while staying attractive to a broad group of internet users—it could continue to appreciate into 2026 and beyond.
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