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Just For You TL;DR: Why Reddit is the New Growth Stock to BeatReported by Nathan Reiff. Article Posted: 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 flattened 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 such as Meta Platforms Inc. (NASDAQ: META) — and even smaller alternatives like Pinterest Inc. (NYSE: PINS) — have struggled to outperform the market, Reddit appears to be heating up. The first half of 2026 could be very tough for certain stocks …
In fact, our research shows the current volatility is just a preview …
Because what's coming in 2026 could be much worse.
Specifically, a radical shift is about to hit the market … Click here now — before it's too late. 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 opportunities highlights Reddit's potential going forward. User Engagement Fuels Potential Growth One of Reddit's brightest spots this year has been engagement. 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 within a 24‑hour period. DAUQ rose about 20% year over year (YOY), roughly matching growth in weekly active uniques (WAUQ). International DAUQ grew faster, about 31% YOY, with notable gains in France, Brazil and India. Reddit's business depends on a large, engaged user base, and growth in both DAUQ and WAUQ strengthens its appeal to advertisers, who account for the bulk of the company's sales. One relatively untapped revenue source is data. With roughly 3.8 billion site visits in September alone, Reddit has substantial user data that could become increasingly valuable amid the AI boom. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement has risen, Reddit's revenue has climbed. In the latest earnings, revenue reached $585 million — up more than two‑thirds from a year earlier. International revenue was especially strong, rising 74% YOY. Earnings per share (EPS) jumped roughly 400% as both top and bottom lines comfortably beat analyst expectations. Guidance for the fourth quarter put revenue between $655 million and $665 million. Measured on a per‑user basis, average revenue per user (ARPU) stood at $5.04 in the most recent quarter, a 41% YOY improvement but still well below many peers (Meta's ARPU, for example, is about three times higher). That gap represents a clear opportunity: Reddit can raise ARPU by better monetizing its unique content and communities and by expanding tools that help advertisers reach diverse, active audiences. AI and Human Content Balance Key to 2026 Outlook Analysts are generally optimistic heading into the new year, with 18 of 29 assigning a Buy or equivalent rating. After its year‑end rally, Reddit is approaching the consensus price target of $230.28, leaving some uncertainty about near‑term upside. How Reddit navigates AI will be central to its valuation. So far, the company has limited user‑facing AI features and leaned into human‑generated content — an approach that has broadened its appeal. If Reddit can maintain a balance of authentic content and useful tools while continuing to grow and monetize its audience, it could sustain gains into 2026 and beyond.
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