TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  Investing.com

Reddit: Why Is It the New Growth Stock to Beat?

Investing.com Logo Investing.com By Nathan Reiff
Reddit: Why Is It the New Growth Stock to Beat?

Reddit has emerged as a standout growth stock in 2025, returning 37% year-to-date while competitors like Meta and Pinterest underperformed. The platform's strength is driven by impressive user engagement (116 million daily active users, up 20% YOY), surging revenue ($585 million, up 67% YOY), and international expansion. With ARPU at $5.04 (up 41% YOY) still significantly below competitors, Reddit has substantial room for monetization improvement. Analysts remain optimistic with 18 of 29 assigning Buy ratings, though the stock is nearing consensus price targets.

Insights
RDDT   positive

Strong 37% YOY return, impressive 20% user growth to 116M DAU, 67% revenue growth to $585M, 400% EPS growth, and 31% international user growth. Significant ARPU upside potential ($5.04 vs Meta's ~$15) and analyst support (18 of 29 Buy ratings) indicate strong growth trajectory.