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Just For You TL;DR: Why Reddit is the New Growth Stock to BeatBy Nathan Reiff. Publication Date: 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 signs of 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 alternatives like Pinterest Inc. (NYSE: PINS) — have struggled to outperform the market, Reddit appears to be heating up. A tiny government task force just wrapped up 20 years of work.
And buried in their federal filings, I found something remarkable:
American citizens now have a legal birthright claim to something previously inaccessible.
Under U.S. law, you can stake your claim right now. The name and ticker are available here now >>> What might 2026 have in store for the popular aggregation site, and will it remain the growth stock to beat? A closer look at user engagement, advertising momentum, and avenues for revenue improvement sheds light on Reddit's potential going forward. User Engagement Fuels Potential Growth One of Reddit's brightest spots this year has been engagement. The company ended the third quarter with an impressive 116 million daily active uniques (DAUQ), defined as individual users who visited reddit.com, opened a related app, or otherwise engaged with one of its platforms within a 24‑hour period. That figure rose about 20% year‑over‑year (YOY), roughly matching the gain in weekly active uniques (WAUQ). International DAUQ grew even faster, about 31% YOY, driven by gains in France, Brazil, and India. Reddit's business model depends on scale, and its DAUQ and WAUQ growth provide meaningful support for future success. With more users, Reddit can exert greater leverage with advertisers, who account for the bulk of the company's sales. An underexploited revenue opportunity is data. With roughly 3.8 billion site visits in September alone, Reddit holds large troves of user data that are increasingly valuable to advertisers and AI developers. Revenue and Earnings Climb, But ARPU Trails Competitors As engagement has grown, Reddit's revenue has surged. In the latest earnings, revenue reached $585 million, up more than two‑thirds year over year. International revenue was especially strong, rising 74% YOY. Earnings per share (EPS) jumped roughly 400%, with both top and bottom lines beating analyst expectations. Guidance for the fourth quarter projected revenue between $655 million and $665 million. Reddit measures success not just in absolute revenue but per user. Average revenue per user (ARPU) was $5.04 in the most recent quarter, up 41% YOY but still well below many rivals (Meta's ARPU, for example, is roughly three times higher). Raising ARPU represents a significant growth opportunity, but it will require more than user growth alone. The company can boost ARPU by better monetizing its unique content and communities and by expanding tools such as auto‑translations and content indexing—capabilities that are particularly attractive to advertisers seeking diverse, engaged 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 the year‑end rally, short‑term upside is less clear. With a consensus price target of $230.28, Reddit is approaching the level analysts currently expect. How the company navigates AI will be important for future appreciation. To date, Reddit has limited AI deployment on the user‑facing side, which has helped preserve access to human‑generated content that appeals to a broad and growing user base. If Reddit maintains a balance of compelling human content and useful tools—while continuing to improve monetization—it could sustain gains into 2026 and beyond.
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