Can Improving User Engagement Push the Reddit Stock Higher?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 14 2025
0mins
Source: NASDAQ.COM
User Engagement and Revenue Growth: Reddit has seen a significant increase in user engagement, with Daily Active Uniques (DAUq) and Weekly Active Uniques (WAUq) rising 31% year over year. The platform's ad revenue also grew by 61% to $358.6 million in the first quarter, driven by enhancements like AI-powered content ranking and community tools.
Competitive Landscape and Stock Performance: Despite its growth, Reddit faces stiff competition from Meta Platforms and Nextdoor in the advertising space. Reddit's stock has declined 10.9% year-to-date, trading at a premium compared to industry averages, and currently holds a Zacks Rank of #4 (Sell).
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 563.850
Low
655.15
Averages
824.71
High
1117
Current: 563.850
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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