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Additional Reading from MarketBeat TL;DR: Why Reddit is the New Growth Stock to BeatBy Nathan Reiff. Article Posted: 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 alternatives such as Pinterest Inc. (NYSE: PINS) — have struggled to outperform the market, Reddit appears to be heating up. For the first time ever, James Altucher – one of America's top venture capitalists – is sharing how ANYONE can get a pre-IPO stake in SpaceX… with as little as $100! [[Click here now to view.]] What might 2026 hold for the popular aggregation site, and can it remain the growth stock to beat? A look at user engagement, advertising momentum, and potential revenue expansion helps clarify Reddit's prospects. 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 related app, or otherwise engaged with the platform in a 24‑hour period — up roughly 20% year over year. Weekly active uniques (WAUQ) rose by a similar rate. International DAUQ growth was even stronger, about 31% year over year, led by gains in France, Brazil and India. Reddit's business model relies on a large, engaged user base, and growth in DAUQ and WAUQ supports its ability to attract advertisers, who account for the majority of sales. Another under‑exploited revenue opportunity tied to user growth is data. With some 3.8 billion site visits in September alone, Reddit has extensive user data that could become increasingly valuable as interest in AI and data‑driven advertising grows. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement increases, Reddit's revenue has followed. In the latest earnings report, revenue reached $585 million, up more than two‑thirds year over year. International revenue was particularly strong, rising 74% year over year. Earnings per share (EPS) jumped about 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. Measured on a per‑user basis, average revenue per user (ARPU) was $5.04 in the last quarter, a 41% increase year over year but still well below many rivals (Meta's ARPU, for example, is roughly three times higher). Improving ARPU represents a clear upside, but it will require more than user growth alone. Reddit can lift ARPU by better monetizing its unique content and communities and by deploying features such as auto‑translations and improved indexing — capabilities that are attractive to advertisers seeking diverse, engaged audiences. AI and Human Content Balance Key to 2026 Outlook Analysts are generally optimistic about Reddit heading into 2026, with 18 out of 29 rating the stock a Buy or equivalent. After its year‑end rally, Reddit is approaching the consensus price target of $230.28, which suggests limited short‑term upside based on current estimates. How Reddit handles AI will be central to its future performance. So far, the company has limited user‑facing AI features, and its emphasis on human‑generated content has appealed to a growing audience. If Reddit can strike the right balance — enhancing the platform with useful AI tools while preserving the value of human contributions — it could sustain engagement, lift monetization, and continue to appreciate into 2026 and beyond.
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