Reddit Expands Ad Platform With New Suite: Can the Launch Pay Off?
Reddit RDDT continues to scale its advertising business by turning real-time community engagement into a source of strategic insights for brands. As advertisers seek platforms that combine scale with authenticity, Reddit's community-led model is gaining momentum across performance and brand campaigns.
RDDT recently launched Community Intelligence, a new suite designed to help marketers monitor live conversations across subreddits, extract trend signals and optimize campaign decisions. The toolset enables advertisers to analyze sentiment, product mentions and emerging topics in real-time, thereby transforming Reddit's open-conversation network into a dynamic planning engine. The new suite builds on Reddit Pro and supports full-funnel execution — from awareness to conversion. With Community Intelligence, Reddit positions itself as a platform that turns live user experiences into actionable insights, enabling brands to track cultural relevance and act on user-driven demand patterns.
User engagement continues to strengthen on Reddit, acting as a key catalyst for its advertising growth. In the first quarter of 2025, Weekly Active Users reached 401 million, while Daily Active Uniques hit 108 million — both up 31% year over year. The platform's community-led discussions and open-web visibility are attracting users seeking authentic, experience-driven content across diverse topics.
The growing engagement is driving strong advertiser adoption. In the first quarter of 2025, Reddit reported advertising revenue of $358.6 million — up 61% year over year — and beat the Zacks Consensus Estimate by 5.9%. Performance campaigns accounted for 60% of total ad spend, reflecting growing traction among mid- and lower-funnel advertisers.
As marketers invest in context-aware tools to navigate shifting consumer behavior, Reddit expects Community Intelligence to deepen advertiser traction and support recurring ad-revenue momentum.
RDDT Faces Stiff Competition
Reddit's advertising business faces stiff competition from Alphabet GOOGL and Meta Platforms META, both of which are expanding their AI-driven advertising capabilities.
Alphabet is strengthening its lead through Google Ads and YouTube, offering large-scale performance marketing across search and video. Alphabet's ecosystem is deeply integrated with user behavior signals, but it lacks Reddit's community-led format that enables real-time insight from open discussions.
Meta Platforms continues to strengthen its advertising capabilities across Facebook, Instagram and Reels. With tools like Advantage+ and automated delivery, META Platforms enables personalized ad campaigns for global brands. However, unlike Reddit, Meta Platforms does not surface real-time user discussions that help advertisers track community sentiment and emerging trends.
RDDT's Share Price Performance, Valuation and Estimates
RDDT shares have plunged 18.1% year to date, while the broader Zacks Computer & Technology sector returned 1.6% and the Zacks Internet - Software industry increased 13%.
RDDT's Performance
Reddit stock is trading at a premium, with a forward 12-month Price/Sales of 11.8X compared with the Computer and Technology sector's 6.36X. Reddit has a Value Score of F.
RDDT's Valuation
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 19 cents per share, unchanged over the past 30 days, implying an improvement from the year-ago quarter's loss of 6 cents per share.
The consensus mark for Reddit's fiscal 2025 earnings is pegged at $1.21 per share, which has remained unchanged over the past 30 days. The figure marks an improvement over fiscal 2024's loss of $3.33 per share.
Reddit currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
Reddit Inc. (RDDT): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
34 minutes ago
- National Post
Buss family to sell controlling stake of Lakers for $10B valuation: AP source
The Buss family has agreed to sell the controlling stake of the Los Angeles Lakers to TWG Global CEO Mark Walter, doing so with a franchise valuation of $10 billion — the highest for a professional sports franchise, a person with knowledge of the agreement said Wednesday. Article content As part of the deal, Jeanie Buss — whose family has had control of the Lakers since her father bought the team in 1979 — intends to remain as team governor, said the person, who spoke to The Associated Press on condition of anonymity because neither side immediately announced details. Article content Article content Article content It is not clear how much more of the Lakers that Walter is acquiring. He was part of a group that bought 27% of the Lakers in 2021. Jeanie Buss will still own at least 15% of the Lakers once this transaction is completed; by NBA rule, a governor must have at least that much of an ownership stake. Article content Walter and TWG Global already had the controlling interest in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women's Hockey League, and — through TWG Motorsports — owns several auto racing teams including Cadillac Formula 1. Article content Dodgers manager Dave Roberts said news of the sale to Walter marks 'a very exciting day for the Lakers, for the city of Los Angeles. Article content 'He's very competitive and he's going to do everything he can to produce a championship-calibre team every single year and make sure the city feels proud about the Lakers and the legacy that they've already built with the Buss family,' Roberts said. Article content Article content 'Mark Walter is the best choice and will be the best caretaker of the Laker brand,' Lakers legend Magic Johnson, a business partner of Walter's and someone extremely close to Jeanie Buss, posted on social media. 'The proof is in the pudding on what he's been able to accomplish with the L.A. Dodgers. Mark has been nothing short of a winner notching 2 World Series and 11 NL West divisional titles in the last 12 years!' Article content 'Laker fans should be (ecstatic),' Johnson said. 'A few things I can tell you about Mark — he is driven by winning, excellence, and doing everything the right way. AND he will put in the resources needed to win! I can understand why Jeanie sold the team to Mark Walter because they are just alike — they are competitive people, have big hearts, love to give back, and both prefer to be behind the scenes. This makes all the sense in the world.'
Globe and Mail
36 minutes ago
- Globe and Mail
ExxonMobil Is 1 of the Largest Energy Companies by Market Cap. But Is It a Buy?
Renewable energy sources, including wind and solar, have experienced significant growth over the past few decades, becoming a major contributor to the world's energy needs. But don't let anyone tell you that oil and gas companies are dying. The reality is far from it. Research by The Motley Fool laid out today's energy landscape, and virtually every single one of the world's largest energy companies by market cap deals in fossil fuels. It may not always be this way, but it's a clear sign that oil and gas have plenty of life left for long-term investors. ExxonMobil (NYSE: XOM) is the largest U.S. company, a behemoth with a staggering $440 billion market cap. Is the stock a good buy right now? Here is what you need to know. An industry stalwart you can buy and hold through adversity ExxonMobil is an integrated oil and gas company, meaning it diversifies its business across exploration, refining, and distribution. Its diverse operations, along with its massive size and scale, help the company endure hardship when oil and gas commodity prices drop to unprofitable levels. ExxonMobil's dividend streak is the most glaring proof of this. The company has paid and raised its dividend for 42 consecutive years. Very few companies in any industry have accomplished this, let alone the energy sector. Five years ago, the COVID-19 pandemic abruptly turned the world on its head, sending oil prices below zero for the first time. Not even that stopped ExxonMobil from raising its dividend. Today, ExxonMobil could be in its best financial standing in recent memory, ready for what the future holds. The company has a sterling AA- credit rating from S&P Global, well into investment-grade territory. Additionally, ExxonMobil has $17 billion in cash on its balance sheet and debt amounting to just 8.3% of its assets, its lowest level in over 10 years. ExxonMobil may not be an exciting business, but it's the rare energy stock you can buy and hold without losing a wink of sleep. Drilling for growth and cash The energy giant has shifted gears to drive growth over the next five years. First, ExxonMobil acquired Pioneer Natural Resources in a $64.5 billion (enterprise value) all-stock transaction that closed in May 2024. The merger expanded ExxonMobil's footprint in the Permian Basin, an oil-rich region in the Southwestern United States. Management believes that growing production in profitable regions, such as the Permian Basin and Guyana, combined with cost-cutting measures, will help ExxonMobil increase earnings by $20 billion, cash flow by $30 billion, and generate a cumulative $165 billion in cash by 2030. It's an ocean of capital that would enable the company to invest in its core business, build new revenue streams outside of oil and gas, repurchase shares, and, of course, continue to raise its dividend. These goals could change if oil and gas prices fall for an extended period. However, management clearly believes the company will continue to grow profitably. Plus, the Trump administration supports the oil and gas industry, so ExxonMobil shouldn't face much political pushback anytime soon. Is the stock a buy? ExxonMobil stock offers a solid foundation for investment returns, with its dependable 3.9% dividend yield. From there, 5% to 6% annualized growth could deliver 9% to 10% total returns, on par with what the broader stock market averages in a typical year. That seems pretty achievable, given ExxonMobil's 2030 financial targets. Currently, analysts predict that the company will grow its earnings by an average of 9.6% annually over the long term. It's always tricky to gaze too far into the future with energy companies, so it's best to temper expectations. The good news is that if the energy sector does falter, ExxonMobil is arguably the safest oil and gas stock you could ask for. No, a $440 billion company isn't going to make you a millionaire overnight. Still, ExxonMobil is worth buying for anyone looking for stability, solid growth prospects, and a meaningful dividend from the jump. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Globe and Mail
an hour ago
- Globe and Mail
Market Analysis: June 18th, 2025
Global Markets Canadian Markets Canada's main stock index rose modestly on Wednesday, as investors and traders digested the comments from the Bank of Canada, which opted to 'Hold' its key interest rate steady recently. The BoC cited an 'unpredictable' economic environment as the primary reason for the pause in rate cuts. Although inflation has cooled somewhat, policymakers remain concerned about mixed signals in consumer spending, business investment, and global economic trends. The BoC emphasized it will remain data-dependent in future decisions. American Markets U.S. markets traded mixed as investors digested the latest Federal Reserve policy update. The Fed held its benchmark interest rate steady at 4.25%-4.5% , marking the fourth consecutive meeting with no change. The central bank reiterated its projection for two interest rate cuts by year-end, a signal that it still sees room to ease monetary policy in the second half of 2025—provided inflation continues to cool. On the labor front, new data from the U.S. Department of Labor showed that jobless claims fell slightly to 245,000 from 250,000 the week prior. Though marginally better than expected, the number remains relatively elevated, suggesting softening in the job market—a potential relief for the Fed's inflation concerns, but also a sign of slowing economic momentum. European Markets European stocks closed broadly lower. Sentiment was weighed down by concerns over France's economic growth, with projections now showing only a 0.6% GDP expansion for 2025. The tepid outlook comes amid rising political uncertainty following recent election results and elevated public debt levels. In the United Kingdom, markets fared slightly better, where markets closed marginally higher, buoyed by in-line inflation data. The U.K.'s annual inflation rate slowed to 3.4% in May, matching economist expectations. This reinforced speculation that the Bank of England may be nearing a pivot toward rate cuts, possibly as early as the next few months, providing some support for consumer-facing sectors and rate-sensitive industries. Corporate News American Airlines Inc Bernstein cut price target from $15 to $14 due to rising jet fuel costs impacting Q3 margins. Blackstone Inc Cirsa (owned by Blackstone) to raise €460M in Madrid IPO: €400M new shares, €60M secondary. Proceeds to fund growth and reduce debt. Boeing Inc & General Electric Co Investigators believe emergency system was engaged in Air India crash. Raises questions about engine performance; aircraft used GE GEnx engines. Definity Financial Corp RBC initiates with Outperform rating, target C$87, citing benefits from Travelers acquisition. Delta Air Lines Inc Bernstein lowers target from $61 to $60, citing weak demand and pressure to reduce flight capacity. General Mills Inc Will eliminate artificial colors and dyes from all U.S. retail and school foods by end of 2027. Goldman Sachs Group Inc Revamps Asia operations, unifying teams to expand investment banking presence and boost deal flow in the region. Groupe Dynamite Inc RBC raises target to C$27 from C$23 after stronger-than-expected Q1 earnings. Hasbro Inc Cuts 3% of global staff (~150 roles) to reduce exposure to China tariffs; speeding up sourcing diversification. Jabil Inc JPMorgan lifts target to $214 from $180 citing strong performance in AI strategy and execution. Keyera Corp Buying Plains' Canadian NGL business for C$5.15B, adding infrastructure across Alberta, Saskatchewan, Manitoba, Ontario. Deal closes Q1 2026. Meta Platforms Inc OpenAI CEO says Meta offered staff up to $100M bonuses to switch jobs; called Meta a top AI rival. Nvidia Corp Malaysia investigates reports of Chinese firms using Nvidia chips for AI model training in local data centers. Sarepta Therapeutics Inc TD Cowen cuts target to $24 from $62, citing expected FDA revocation of Elevidys approval. TC Energy Corp
