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Yahoo
21-05-2025
- Business
- Yahoo
Reddit vs. Bumble: Which Social Networking Stock is a Better Buy?
Reddit RDDT and Bumble BMBL operate social networking platforms that facilitate user-generated content and community engagement, offering investors exposure to the social networking sector. RDDT serves as a vast network of communities where users can discuss a wide range of topics, while BMBL offers dating, friendship, and professional networking services, emphasizing user interaction and Mordor Intelligence report, the global social networking market size is projected to be valued at $95.33 billion in 2025, and is expected to reach $209.82 billion by 2030, witnessing a CAGR of 17.09% during the forecast period from 2025 to 2030. RDDT and BMBL are likely to benefit from the significant growth opportunity highlighted by the rapid pace of or BMBL — Which of these Social Networking stocks has the greater upside potential? Let's find out. Reddit is benefiting from the continued expansion of its advertising business, higher user engagement, and the company's growing artificial intelligence (AI) initiatives. Ad revenues increased 61% year over year to $358.6 million in the first quarter of the reported quarter, weekly active users grew 31% to 401 million, and daily active users rose 31% to 108 million, increasing engagement and ad enhanced its search capabilities, making it easier for users to find relevant content and communities. In the first quarter of 2025, Reddit Answers, RDDT's AI-powered search tool, reached one million weekly users and expanded globally, starting with Australia and the United company's expanding portfolio has been a key catalyst. In May 2025, RDDT enhanced Reddit Pro with streamlined profile setup and new tools that allow businesses to showcase community conversations. These updates make it easier for brands to build trust, connect authentically, and engage with Reddit's vast network of communities. BMBL is benefiting from enhanced user experience through new features, AI-driven personalized matching, and strong growth in its Bumble BFF friendship on this momentum, the company is investing in new features like the Discover tab, safety tools like ID verification, date review, and an upcoming coaching hub, which are designed to improve user experience and engagement. It is also investing in Bumble BFF to grow its friendship platform, expanding the brand beyond just dating. The focus on Bumble BFF has been noteworthy, as it has become a key growth area with more than one million active users, especially popular with Gen Z and young professionals, further expanding the brand's company is also rapidly enhancing its personalized matching algorithm using AI and machine learning to deliver more relevant matches, which is already showing positive early results. Moreover, BMBL is actively removing bots, scammers, and low-quality profiles while fostering a verified, trusted community. This effort increases member trust and encourages better engagement, which is critical for long-term sustainable growth. In the year-to-date period, shares of RDDT and BMBL have lost 34% and 30%, respectively. The dip in RDDT and BMBL's share price is due to the challenging macroeconomic environment. A broader market weakness in the tech sector and persistent fear over mounting tariffs have added to the pressure. Intense competition also remained a headwind. Image Source: Zacks Investment Research Valuation-wise, RDDT shares are currently overvalued as suggested by a Value Score of F. BMBL shares are trading cheap as suggested by a Value Score of terms of the forward 12-month Price/Sales, RDDT shares are trading at 9.71X, which is higher than BMBL's 0.62X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for RDDT's 2025 earnings is pegged at $1.21 per share, which has increased 16.3% over the past 30 days, indicating a 136.34% rise year over year. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The Zacks Consensus Estimate for BMBL's 2025 earnings is pegged at 86 cents per share, which has risen 32.3% over the past 30 days, indicating a 118.66% increase year over year. Bumble Inc. price-consensus-chart | Bumble Inc. Quote While both RDDT and BMBL stand to benefit from the booming social networking market, BMBL offers greater upside potential with stronger earnings growth, cheaper valuation, and expanding platforms beyond dating. Its focus on expanding portfolio, AI-driven personalization, and Gen Z engagement positions it well for long-term RDDT's expanding advertising business increasing international reach, and improving the user experience with upgraded search and discovery features, the company is suffering from intense competition from other social media platforms, which is consistently affecting user engagement and market share in advertising. Stretched valuation also remains a Bumble carries a Zacks Rank #2 (Buy), making the stock a stronger 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 Bumble Inc. (BMBL) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Reddit intros new profile tools for business customers
Reddit on Thursday announced profile enhancements for businesses that've joined Reddit Pro, the company's suite of tools designed to help brands discover, join, and contribute to the social network's communities and conversations. Now, Reddit will now generate suggested profile bios for businesses during Reddit Pro sign-up. Once businesses provide their website, they can choose from one of several suggested descriptions. Businesses can also showcase community posts and comments on their profiles beginning today, cross-posting conversations about them or their industry in the Reddit Pro Trends tab. The Trends tab, which launched earlier this year, allows businesses to uncover what people are saying about virtually any topic on Reddit via keyword and phrase tracking. "Businesses of all sizes have an opportunity on Reddit, where over half of all online purchasing conversations take place," Jim Squires, EVP of business marketing and growth at Reddit, said in a statement. "Our new Reddit Pro profile tools are helping them build presence and credibility with greater ease and confidence. And in doing so, we're enriching our communities with passionate, subject-matter experts while also empowering businesses to grow and succeed." The updates come on the heels of a successful fiscal quarter for Reddit, which has proven to be resilient in the face of economic uncertainty. The company reported revenue of $392.4 million, up 61% year-over-year, and daily active unique users of 108.1 million, a 31% year-over-year increase — handily beating Wall Street expectations.
TechCrunch
08-05-2025
- Business
- TechCrunch
Reddit intros new profile tools for business customers
Reddit on Thursday announced profile enhancements for businesses that've joined Reddit Pro, the company's suite of tools designed to help brands discover, join, and contribute to the social network's communities and conversations. Now, Reddit will now generate suggested profile bios for businesses during Reddit Pro sign-up. Once businesses provide their website, they can choose from one of several suggested descriptions. Businesses can also showcase community posts and comments on their profiles beginning today, cross-posting conversations about them or their industry in the Reddit Pro Trends tab. The Trends tab, which launched earlier this year, allows businesses to uncover what people are saying about virtually any topic on Reddit via keyword and phrase tracking. Business customers on Reddit can now highlight user posts in their profiles. Image Credits:Reddit 'Businesses of all sizes have an opportunity on Reddit, where over half of all online purchasing conversations take place,' Jim Squires, EVP of business marketing and growth at Reddit, said in a statement. 'Our new Reddit Pro profile tools are helping them build presence and credibility with greater ease and confidence. And in doing so, we're enriching our communities with passionate, subject-matter experts while also empowering businesses to grow and succeed.' The updates come on the heels of a successful fiscal quarter for Reddit, which has proven to be resilient in the face of economic uncertainty. The company reported revenue of $392.4 million, up 61% year-over-year, and daily active unique users of 108.1 million, a 31% year-over-year increase — handily beating Wall Street expectations.
Yahoo
08-03-2025
- Business
- Yahoo
Reddit's ad revenue is growing faster than other social media platforms
Reddit's ad revenue is growing faster than any other social media platform, according to EMARKETER. A new report says Reddit's user base is expanding due to its unique "social" feel. Still, advertisers face challenges on Reddit due to the site's unique communities. A new report shows that Reddit's ad revenue is growing faster than any other social media platform. Still, advertising on the app isn't as easy as it seems. The report from EMARKETER says that Reddit's year-over-year ad revenue will grow by more than 30% this year, according to its estimates. EMARKETER is a digital marketing research company owned by Business Insider parent company, Axel Springer. The highest ad revenue growth among social media platforms following Reddit came from TikTok with 25% and Instagram with 15% year-over-year growth, according to the report. Reddit CEO Steve Huffman has said that Reddit is one of the few places left on the internet that allows people to hold communal conversations with each other. Huffman said at a Wall Street Journal event in October that Reddit posts are valuable for search engines and AI because they contain a wealth of "colloquial words about pretty much every topic" that are constantly updated. Analysts from EMARKETER said in the report that Reddit's user base is growing, partly because it is one of the few social media platforms that still feels "social." "That's a big reason why it's one of the only social platforms seeing time spent gains in 2025, per our forecasts," the report says. However, while the social feel of Reddit is attracting swaths of new users, it could make it hard for advertisers to come across as relatable on the site. The report notes that Reddit users "typically don't want brands in their conversations, especially ones that aren't upfront about who they are." Some advertisers have found ways to integrate into Reddit communities, including by creating employee accounts. User KiethFromSonos, a Sonos employee who asked to join the Reddit community r/Sonos, gradually earned a place in the community, the report says. Reddit is also giving advertisers tools to make it easier for them to have an organic presence on the website, the report says. In March of last year the company created Reddit Pro, a platform that gives advertisers analytics, insights, and publishing tools, and earlier this year Reddit announced a new format that lets advertisers promote upcoming AMAs. When reached for comment on Friday, a Reddit spokesperson directed Business Insider to the company's quarter four earnings report. Reddit COO Jen Wong said in an earnings call on February 12 that the company saw "broad growth" across advertising verticals, with 10 of its 15 verticals growing by over 50% year-over-year. Wong said the areas that saw the most growth were finance, retail, auto, pharma, gaming, and tech. "We continue to focus on: one, driving performance of our ad solutions across objectives; two, improving usability for our advertisers and productivity for our sales force; and three, offering our advertisers Reddit-unique solutions and ad formats," Wong said on the call. Read the original article on Business Insider Sign in to access your portfolio
