Thanks for joining DividendStocks.com, the daily newsletter built for dividend and income investors like you. We’re thrilled to have you on board and can’t wait to help you discover the best dividend opportunities out there. Before we can start sending your daily insights, please take a quick moment to confirm your subscription: Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Why wait? Let’s get your dividend journey started! Click Here to Start Discovering Top Income-Generating Stocks See you in your inbox soon, The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
This Week's Bonus Story TL;DR: Why Reddit is the New Growth Stock to BeatSubmitted by Nathan Reiff. First Published: 12/19/2025. 
Summary - 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 and reignited 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 like Meta Platforms Inc. (NASDAQ: META) and some alternatives such as Pinterest Inc. (NYSE: PINS) have struggled to outperform the market, Reddit appears to be heating up. A free report revealing the 7 key indicators that have predicted every major economic collapse since 1929.
Right now, all seven are flashing red simultaneously for the first time since 2007.
These aren't the signals you'll see on CNBC. Claim Your Free Report 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 the company's capacity to boost revenue helps clarify Reddit's potential going forward. User Engagement Fuels Potential Growth One of Reddit's standout achievements this year has been its strong engagement gains. The company closed the third quarter with about 116 million daily active uniques (DAUQ) — users who visited reddit.com, opened a related app, or otherwise engaged with one of its platforms within 24 hours. That figure rose roughly 20% year-over-year (YOY), a similar increase to weekly active uniques (WAUQ). International DAUQ growth ran even hotter, about 31% year-over-year, driven by gains in France, Brazil, and India. Reddit's business depends on a large and active user base. Growth in DAUQ and WAUQ strengthens the company's position with advertisers, which generate the bulk of its revenue. Another relatively untapped revenue opportunity is data monetization. With roughly 3.8 billion site visits in September alone, Reddit sits on valuable behavioral data that could become increasingly important as AI-driven advertising and analytics expand. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement has grown, so has revenue. In the latest earnings, Reddit reported $585 million in revenue — up more than two-thirds from a year earlier. International revenue was especially strong, rising 74% YOY. Earnings per share (EPS) jumped about 400% as both the top and bottom lines comfortably beat analyst expectations. The company guided fourth-quarter 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 competitors (Meta's ARPU is roughly three times that level). Improving ARPU is a clear growth lever, but it will require more than just adding users. Reddit can raise ARPU by better monetizing its unique content and communities and by expanding tools such as auto-translations and content indexing—capabilities that are especially attractive to advertisers seeking diverse, engaged audiences. AI and Human Content Balance Key to 2026 Outlook Analysts are generally optimistic going into the new year: 18 of 29 covering the stock assign it a Buy or equivalent rating. After its year-end rally, Reddit's short-term upside is uncertain — the consensus price target of $230.28 suggests the stock is approaching the level analysts expect. How Reddit manages AI will be pivotal. So far, the company has limited AI's role on the user-facing side, and the platform's emphasis on human-generated content has broadened its appeal. If Reddit continues to strike a balance between authentic community-driven content and AI-powered tools and successfully monetizes its audience and data, it could sustain momentum into 2026 and beyond.
|