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Saturday's Exclusive Content TL;DR: Why Reddit is the New Growth Stock to BeatSubmitted by Nathan Reiff. Originally Published: 12/19/2025. 
What You Need to Know - 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, reigniting a rally that had flattened earlier in the fall. The online content‑sharing platform is showing rapid growth: its user base, revenue 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 competitors like Pinterest Inc. (NYSE: PINS) have struggled to outperform the market or have declined this year, Reddit appears to be gaining momentum. Looking back, major presidencies are often defined less by daily headlines and more by the structural shifts that occur behind the scenes.
In a recent discussion, two analysts examine what they believe is a significant national priority shaping policy, capital flows, and long-term economic direction — and why trillions of dollars may already be moving toward a narrow segment of the market as a result. They outline what this shift could mean for investors positioning ahead of it. Watch the full discussion here 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 the brightest spots for Reddit this year has been its engagement gains. The company closed the third quarter with an impressive 116 million daily active uniques (DAUQ) — individual users who visited a reddit.com page, opened a related app, or otherwise engaged with its platforms within a 24‑hour period. DAUQ rose about 20% year‑over‑year (YOY), roughly matching weekly active uniques (WAUQ) growth. International DAUQ growth reached roughly 31% YOY, outpacing overall engagement gains thanks to strong performance in France, Brazil and India. Reddit's business depends on scale: DAUQ and WAUQ growth strengthen its appeal to advertisers, who account for the majority of the company's revenue. One relatively untapped monetization opportunity is data. With some 3.8 billion site visits in September alone, Reddit sits on large troves of user data that could become increasingly valuable as AI applications expand. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement grows, so has revenue. In the latest earnings, revenue reached $585 million, up more than two‑thirds from a year earlier. International revenue was especially strong, jumping 74% YOY. Earnings per share (EPS) rose roughly 400%, with both the top and bottom lines beating 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 — up about 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; Reddit needs to extract more revenue per active user. The company can raise ARPU by better leveraging its distinctive content and community engagement, plus features like auto‑translations and improved indexing — capabilities that should appeal to advertisers seeking diverse, active audiences. AI and Human Content Balance Key to 2026 Outlook Analysts are generally optimistic about Reddit heading into 2026, with 18 out of 29 assigning it a Buy or equivalent rating. After its late‑year rally, the stock's short‑term upside is uncertain — based on a consensus price target of $230.28, Reddit is approaching the level analysts expect it could reach. How Reddit navigates AI will be important for future upside. So far the company has limited user‑facing AI features, and its emphasis on human‑generated content has broad appeal. If Reddit continues to balance strong community content with useful tools and advertiser-friendly features, it could sustain growth and further appreciation into 2026 and beyond.
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