Latest news with #RedditPixel
Yahoo
07-08-2025
- Business
- Yahoo
Reddit vs. Snap: Which Social Media Ad Stock is the Smarter Buy Now?
Reddit RDDT and Snap SNAP are user-driven social platforms competing for digital ad budgets. While Snap focuses on visual messaging, AR experiences and creator content, Reddit emphasizes interest-based public forums with strong community engagement. Both platforms are investing in AI to improve ad targeting, content discovery and overall campaign a report by The Business Research Company, the global social media ad market is projected to grow from $228.18 billion in 2024 to $406.64 billion by 2029, at a CAGR of 12.25%. Reddit is scaling tools like Reddit Answers and contextual targeting, while Snap is advancing Smart Campaign Solutions and Sponsored Snaps. As brands seek platforms with personalized reach and engaged audiences, both stocks are working to capture share in the expanding digital ad SNAP or RDDT, who has an edge right now? Let's delve deep to find out. The Case for RDDT Reddit is scaling as a community-driven social platform built around public discussion. With over 100,000 active subreddits, the platform supports highly engaged forums across diverse interest areas. Reddit Answers reached 6 million weekly active users in the second quarter of 2025, up 5x sequentially. AI models now power ranking, onboarding, moderation and translation, boosting engagement and ad tools are expanding appeal among performance marketers. Features like Reddit Pixel, Conversion API and Dynamic Product Ads enhance attribution. and Meta's integrations simplify campaign setup, while Conversation Placement formats see up to 10% higher click-throughs than standard developments are helping drive momentum in digital advertising. Ad revenues grew 84% year over year to $465 million in the recently reported second quarter, supported by rising demand from both large brands and performance advertisers. The Zacks consensus Estimate for third-quarter 2025 ad revenues is pegged at $438.33 million. The ad mix now leans toward video, carousel and product formats, comprising over 60% of engagement continues to trend higher as the platform evolves. Daily Active Uniques (DAUq) rose 21% year over year in the second quarter to 110.4 million, aided by international expansion and AI-led discovery. The consensus mark for third-quarter 2025 DAUq is pegged at 113.17 million. While ad capabilities are still maturing, Reddit's strong communities and growing advertiser traction are positioning it as a credible challenger in the evolving digital ad landscape. The Case for SNAP Snap continues to evolve as a visual-first social media platform with strong traction among Gen Z users. Its global user base continues to expand, reaching 469 million Daily Active Users (DAU) during the second quarter of 2025, up 8.6% year over experiences remain a key catalyst to Snap's engagement strategy. The Snapchat+ subscriber base approached 16 million during the recently reported quarter, supported by new offerings like Lens+, which gives access to AI-powered video effects and exclusive features. Snap's AR tools, including Camera Kit and Spectacles, continue to differentiate it from its peers by enabling immersive experiences across both consumer and enterprise use advertising platform is evolving with commerce-driven ad volume growing 39% year over year in the second quarter, and newer ad formats such as Sponsored Snaps are delivering stronger conversion outcomes. With campaign tools improving measurability and efficiency, Snap is seeing broader advertiser adoption. The Zacks consensus estimate for third-quarter 2025 revenue is pegged at $1.26 billion, indicating sustained advertiser interest. While the consensus mark for third quarter 2025 DAUs is pegged at 476.62 competition remains intense, Snap's blend of product depth, creator engagement and ad performance progress reinforces its relevance in the social media ad landscape. Price Performance and Valuation of RDDT and SNAP In the year-to-date period, RDDT shares have rallied 30.2%, while SNAP shares have declined 27.7%. RDDT and SNAP Price Performance Image Source: Zacks Investment Research In terms of valuation, Reddit appears more expensive, trading at 17.35X forward 12-month Price/Sales compared with Snap's Reddit and Snap hold a Value Score of F. RDDT and SNAP Valuation Image Source: Zacks Investment Research How Do Earnings Estimates Compare for RDDT and SNAP? The Zacks Consensus Estimate for Reddit's third-quarter 2025 earnings is pegged at 34 cents per share, up by 2 cents over the past 30 days. The figure marks an improvement of 112.5% over the year-ago quarter's reported figure. Reddit Inc. Price and Consensus Reddit Inc. price-consensus-chart | Reddit Inc. Quote The Consensus mark for SNAP's third-quarter 2025 earnings is pegged at 4 cents per share, unchanged over the past 30 days. The figure marks a decline of 50% over the year-ago quarter's reported figure. Snap Inc. Price and Consensus Snap Inc. price-consensus-chart | Snap Inc. Quote Here's Why SNAP is a Better Buy Right Now Both Reddit and Snap are gaining traction in the digital ad space. Reddit is building momentum through community-led engagement and improving ad tools, though its monetization model is still evolving. Snap, on the other hand, offers a mature platform with a broader global footprint, deeper youth traction and expanding premium features like Snapchat+ that enhance more established user ecosystem and scalable ad formats give it a clearer path to near-term growth. Meanwhile, Reddit's stretched valuations and earlier-stage monetization framework suggest a more measured Snap carries a Zacks Rank #2 (Buy), making it a more attractive pick than Reddit, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Snap Inc. (SNAP) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-07-2025
- Business
- Yahoo
RDDT vs. META: Which Social Media Ad Stock Has an Edge Right Now?
Both Meta Platforms META and Reddit RDDT are major players in the social media domain. Meta Platforms owns Facebook, Instagram and WhatsApp, serving over 3.4 billion daily userswhile Reddit focuses on community discussions with 108.1 million daily the stocks generate majority of their revenues from a report by The Business Research Company, the global social media advertising market is expected to grow from $228.18 billion in 2024 to $406.64 billion in 2029, indicating a CAGR of 12.25%. Both companies are heavily investing in AI to enhance their respective advertising capabilities and user experiences. Meta Platforms has deployed AI across its recommendation systems and launched Meta AI with nearly a billion monthly users, while Reddit has integrated AI-powered search through Reddit Answers and improved content recommendation META or RDDT, which has an edge right now? Let's delve deepto find out. Reddit is benefiting from strong growth in user engagement, including rising daily and weekly active users, ARPU gains and expanding advertiser tools like DPA, Reddit Pixel and CAPI. Reddit's AI-powered features, including Reddit Answers, are key catalysts in enhancing content discovery and personalization. Reddit Answers has more than one million weekly users. Reddit aims to deepen advertiser onboarding and improve campaign outcomes through integrations with and Meta Platforms' campaign import expects revenues between $410 million and $430 million for the second quarter of 2025, indicating 46-53% year-over-year growth. AI-led product development is improving platform experience and scale. The company hosts a data trove that becomes the foundation of large language model training. Reddit's platform has more than 100,000 active subreddits, with over 500 subreddits that each have at least one million subscribers. Investments in AI have improved new user onboarding and driven engagement with existing users. Internally developed models are powering feed ranking, onboarding, translation and growth appears less stable despite recent strong performances. While the company reported its third straight quarter of more than 60% revenue growth in first-quarter 2025, several concerns limit its prospects. The platform depends heavily on Google search traffic for new users, making it vulnerable to changes in search algorithms that Reddit cannot control. The platform's community-based model, while unique, makes it harder to grow quickly compared to automated content systems Reddit's subscription services and tools for content creators remain underdeveloped, limiting ways to diversify revenue. The company's advertising technology is less advanced than Meta Platforms and Google, which may hurt its ability to keep advertisers and run effective campaigns in the competitive digital advertising market. Meta Platforms continues to show strong performance across its ecosystem, supported by deep AI integration and a broad user base. Upgrades to its recommendation systems have led to a 7% increase in time spent on Facebook and 6% on Instagram over the past six months. Meta AI now reaches nearly one billion monthly users, underscoring the platform's ability to scale new experiences across advertising business remains the core revenue engine. AI-powered improvements have boosted conversion rates by 5% in Facebook Reels. More advertisers are adopting Meta's creative tools, making campaign development faster and more accessible. WhatsApp's push into business messaging, especially in emerging markets, is expected to open additional revenue company recently announced features to the Ads Manager that enable businesses to manage their marketing strategy across WhatsApp, Facebook and Instagram. Businesses can now upload their subscriber list and either manually select marketing messages as an additional placement or use Advantage+. META's AI system will then optimize budgets across placements to maximize performance. Ads Manager will help businesses in creating ads in Status once the feature is available. Meta Platforms is planning to introduce Business AI that can make personalized product recommendations and facilitate sales on any business' website. Over a WhatsApp chat, the Business AI can also follow up with customers to answer questions and provide updates. Moreover, Meta Platforms plans to launch calling and voice options for large businesses that use the WhatsApp Business Platform, thereby strengthening the relationship between businesses and customers. Shares of Reddit have plunged 8.6% year to date and have underperformed the appreciation in Meta Platforms shares which were up 24% over the same period. Image Source: Zacks Investment Research Both Meta Platforms and Reddit are overvalued, as suggested by the Value Score of D and F, respectively. In terms of forward 12-month Price/Sales, Meta Platforms shares are trading at 9.06X, lower than Reddit's 12.62X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Reddit's 2025 earnings is pegged at $1.21 per share, unchanged over the past 30days. The figure marks an improvement over 2024's loss of $3.33 per share. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The Consensus mark for META's 2025 earnings is pegged at $25.35 per share, up by 3 cents over the past 30 days, indicating a 6.24% increase over 2024's reported figure. Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta Platforms offers better growth potential through its diverse business model, proven AI implementation and multiple revenue sources, including advertising improvements and business messaging. The company's financial strength, operational skills and ability to use its large user base for new products provide lasting competitive advantages. While Reddit has unique appeal, its limited money-making ability and execution challenges present significant risks. Currently, Meta Platforms with a Zacks Rank #3 (Hold), has an edge over Reddit, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Melden Sie sich an, um Ihr Portfolio aufzurufen.
