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While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Reddit is up 56.2% since the beginning of the year, and at $259.18 per share, has set a new 52-week high.

News

• This move positions Reddit not just as a social media company, but as a provider of essential data for the future of technology.
• But it also represented a continued deceleration in user growth — a pattern that has concerned some on Wall Street.
• While investors recently got a long-awaited interest rate cut from the Federal Reserve, there have also been some potential warning indicators.
• This shows they have strong opinions about where the stock is headed.
• Focusing on revenue, user growth, and how the company makes money will give you a clearer picture than just following the latest trending post.

Reddit’s top-line driver is the ads business, representing 93% of revenue in the past quarter. This segment reported a 74% YoY growth in the last quarter, ARPU up 41%. Google and Meta both reported their third-quarter earnings on Wednesday in which both tech giants surpassed Wall Street expectations.

Reddit, Inc. (RDDT) Q3 2025 Earnings Call Transcript

Analysts are split, with some seeing continued upside and others suggesting caution due to the high price. It’s a good reminder that while Reddit offers a unique window into market sentiment and emerging trends, doing your own research and understanding the underlying business fundamentals remains key. As the platform continues to grow and potentially face new regulations, its influence on investing will likely keep evolving, making it a space worth watching. This isn’t just a small side project; it’s becoming a significant revenue generator. Because the data is unique – it’s real conversations, reflecting genuine opinions and trends.

Reddit reported 64.4 million international daily Top Forex Brokers active users for the period, ahead of the anticipated 62.2 million, per Bloomberg data. Meanwhile, its 51.6 million US users were slightly below the expected 51.9 million. Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications.

Company

The company said it expects fourth-quarter sales to come in the range of $655 million to $665 million, ahead of the $638 million that Wall Street was expecting. If posting a link or image, we ask that you provide some commentary behind the link unless the title is self-explanatory and significant. Simply posting an image by itself or posting your positions, or P&L gain(loss), without market or risk commentary will also be considered low-effort.

It’s unclear if that will move the bottom line anytime soon, but Reddit is a unique asset in its industry. Big investors, like hedge funds, have been making big moves with Reddit’s stock options. Some are betting the price will go up (calls), while others think it will go down (puts). This shows they have strong opinions about where the stock is headed. Reddit’s stock has seen its share of buzz, often driven by community discussions.

Belongs in Portfolio Thread

Others are more cautious, pointing to the stock’s high price compared to its earnings or the company’s history. Reddit (RDDT) stock surged more than 13% Friday after the social media platform reported third quarter revenue ahead of Wall Street’s forecasts and said that its user growth slowed less than analysts expected. Some analysts point out that its price-to-earnings (P/E) ratio is quite high, sometimes cited as being around 200 times trailing earnings.

Sometimes discussions on Reddit can get really hyped up, causing stock prices to jump around a lot. It’s super important to do your own homework and not just buy a stock because people are talking about it online. The company’s valuation is currently high, suggesting that investors are betting on significant future growth. This means there’s less room for error if the company doesn’t meet those high expectations.

• The company’s better-than-expected traffic in Q3 was driven by international users.
• He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom.
• Additionally, see our quick guide on how to ask good questions and share quality content.
• The company’s vast amount of user-generated data is seen as a valuable asset for training AI models.
• Despite the sell-off, the company’s share price is still up 47% across 2025’s trading.

Reddit Chief Operating Officer Jen Wong said that the company is increasingly running performance-marketing campaigns intended to attract more users, particularly those overseas, who may not be aware of the platform. Reddit’s «Other revenue» category, which includes the company’s data licensing business, rose 7% year-over-year to $36 million. Google and OpenAI are the some of Reddit’s biggest data licensing partners. The company said third-quarter global average revenue per user was $5.04, ahead of analyst estimates of $4.82. The excitement around the new Community Intelligence tool shows that investors seem to believe in the company’s potential with AI and advertising.

Online forums have always influenced financial markets to some degree, but the scale and speed seen with platforms like Reddit are unprecedented. The way people discover, discuss, and act on investment ideas has fundamentally changed. The company’s move to license its vast dataset for AI development presents a new frontier for both opportunity and regulatory oversight. Balancing the commercialization of this data with user privacy and existing legal frameworks will be a key challenge. Growth around search and Reddit Inc.’s globalization efforts helped the social-media platform blow past Wall Street’s expectations in its third-quarter results Thursday.

The Reddit stock price popped by over 10% in the extended hours after the company published strong financial results and boosted its forward estimates. Reddit is rated a Strong Buy with a $250 price target, implying 20% upside driven by robust growth and engagement. RDDT posted 68% YoY revenue growth and a 5x EPS surge in FQ3 2025, with a premium 91%… According to 25 analysts, the average rating for RDDT stock is «Buy.» The 12-month stock price target is $219.04, which is an increase of 11.60% from the latest price.

Its revenue soared 68% year-over-year to $585 million, also exceeding expectations as a measure of its users jumped. The social media platform said on Thursday that its revenue for the three months ending Sept. 30 came in at $585 million, ahead of the $549 million expected by Wall Street analysts tracked by Bloomberg. It’s easy to get excited by big price jumps, but a company’s true strength comes from its underlying business. Focusing on revenue, user growth, and how the company makes money will give you a clearer picture than just following the latest trending post. Reddit recently reported its second-quarter earnings, and the results were pretty strong. Revenue jumped significantly compared to the same period last year.

No Pump & Dumps/Low Volume Stocks

The company is working on «making sure there are no barriers» preventing users from seeing relevant content based on their interests, Huffman said. The company’s third-quarter global logged-in DAUq rose 14% year over year to 50.2 million, while its global logged-out DAUq jumped 24% to 65.8 million. Reddit said it expects its adjusted earnings in the fourth quarter to be between $275 million and $285 million, topping StreetAccount’s projections of $259 million. Any posts asking for a review or critique of their portfolio should be posted in the quarterly portfolio thread stickied at the top of r/StockMarket. Please only keep memes to weekends, we will remove them if posted on a weekday.

He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.

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The social media platform helped spawn the meme stock craze four years ago and went public in a blockbuster IPO in early 2024. The DAU metric is key for Reddit because it dictates how effectively the company can monetize its advertising business, which is its largest revenue driver. Reddit stock has exploded since its IPO last March, as the company has both delivered strong growth and turned profitable. New rules could make social media sites like Reddit show more information about financial discussions. But, too many rules might make it harder for people to talk freely about stocks, which is what makes Reddit’s communities special.

In 2024, Reddit’s revenue was $1.30 billion, an increase of 61.71% compared to the previous year’s $804.03 million. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. This article has been updated since it was first published to reflect more recent share prices.

So, what does all this mean for investors keeping an eye on Reddit? The platform has clearly shown its power to move markets, driven by engaged communities and a growing role in areas like AI data. While recent performance has been strong, with significant revenue growth and user increases, it’s also true that the stock’s valuation reflects high expectations, particularly around its AI potential.