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Today's Bonus 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, having returned about 37% in 2025 after a rally that had flatlined earlier in the fall. The online content‑sharing platform is showing 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 alternatives such as Pinterest Inc. (NYSE: PINS) have struggled to outperform the market or have declined this year, Reddit appears to be heating up. With Donald Trump back in the White House, many believe an economic revival could be underway — but it also brings new risks for retirement savers. Traditional 401(k)s and IRAs may leave investors more exposed than they realize.
That's why a Trump-backed IRS strategy is gaining attention. It allows everyday Americans to reposition their retirement savings into real assets like gold and silver — offering both protection and potential upside. A new 2025 Wealth Protection Guide explains exactly how it works. Claim your FREE 2025 Wealth Protection Guide 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 potential revenue expansion highlights Reddit's prospects going forward. User Engagement Fuels Potential Growth One of Reddit's brightest spots this year has been engagement. The company finished the third quarter with 116 million daily active uniques (DAUQ) — individual users who visited reddit.com, opened the app or otherwise engaged with the platform within a 24‑hour period. That figure rose about 20% year‑over‑year (YOY), roughly matching WAUQ (weekly active uniques) growth. International DAUQ grew about 31% YOY, outpacing overall engagement thanks to gains in France, Brazil and India. A large and growing user base supports Reddit's business: DAUQ and WAUQ gains make the platform more attractive to advertisers, who account for the bulk of the company's revenue. Data monetization is a relatively untapped opportunity. With roughly 3.8 billion site visits in September alone, Reddit sits on troves of user data that could become increasingly valuable amid the AI boom. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement rises, Reddit's revenue has climbed sharply. In the latest earnings, revenue reached $585 million, up more than two‑thirds year over year. International revenue was particularly strong, growing 74% YOY. EPS jumped about 400%, with both the top and bottom lines beating analyst estimates. Guidance for the final quarter put revenue between $655 million and $665 million. Average revenue per user (ARPU) was $5.04 last quarter, up 41% YOY but still well below many rivals — Meta's ARPU, for example, is roughly three times higher. Closing that gap will require more than user growth alone. Reddit can raise ARPU by better leveraging its unique content, strong community engagement and features such as auto‑translations and content indexing — capabilities that are attractive to advertisers targeting 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 assigning it a Buy or equivalent rating. After its year‑end rally, short‑term upside is uncertain — with a consensus price target of $230.28, Reddit is approaching the level analysts expect. Central to future upside is how Reddit navigates AI. To date, the company has limited user‑facing AI features, and the platform's emphasis on human‑generated content has broadened its appeal. If Reddit can strike a balance between preserving authentic community content and introducing useful AI‑powered tools and ad products, it could sustain momentum into 2026 and beyond.
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