The Trade Desk and Reddit: Significant Growth Potential Over the Next Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy RDDT?
Source: Fool
- Market Performance: Over the past decade, the S&P 500 has surged by over 260%, despite facing macroeconomic challenges like the pandemic and inflation, highlighting the long-term investment value of high-quality stocks.
- Trade Desk Growth Outlook: Analysts expect The Trade Desk's revenue and adjusted EBITDA to grow by 18% and 16% respectively in 2025, driven by its new AI features and expansion in the CTV market.
- Reddit User Growth: By the end of Q3 2025, Reddit's daily active users reached 116 million, a significant increase from 2024, enhancing its advertising revenue and user engagement.
- Profitability Analysis: Although Reddit's enterprise value stands at $44.1 billion with an adjusted EBITDA multiple of 34, its projected 65% revenue growth and 169% EBITDA growth indicate substantial market potential.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RDDT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 171.630
Low
207.00
Averages
260.00
High
325.00
Current: 171.630
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
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.
- Earnings Beat: Pinterest reported adjusted earnings per share of $0.27 for Q1, exceeding analyst expectations of $0.23, with revenue reaching $1.01 billion, surpassing the consensus estimate of $965.44 million and reflecting an 18% year-over-year growth, indicating strong performance in advertising revenue.
- Strong User Growth: The platform's global monthly active users increased by 11% year-over-year to 631 million, marking the tenth consecutive quarter of double-digit user expansion, suggesting a recovery in competitiveness against Meta, particularly driven by investments in AI.
- Positive Market Outlook: Pinterest expects Q2 revenue to range between $1.13 billion and $1.15 billion, representing a year-over-year growth of 14% to 16%, which exceeds market expectations of $1.12 billion, demonstrating management's confidence in future growth.
- Increased Investor Support: The company recently secured a $1 billion strategic investment from activist investor Elliot, which backs its AI spending and monetization plans, further bolstering market confidence in its future development.
See More
- Earnings Surprise: Pinterest reported adjusted earnings per share of 27 cents for Q1, exceeding the expected 23 cents, with revenue hitting $1.01 billion, surpassing the $966 million forecast, indicating robust market performance.
- Significant User Growth: The global monthly active users increased by 11% year-over-year to 631 million, aligning with analyst estimates, suggesting a growing user base that will support future advertising revenue growth.
- Strong EBIDTA Performance: The adjusted EBIDTA for Q1 was $207 million, exceeding the $176 million expected by analysts, reflecting improvements in cost control and operational efficiency, which bolstered investor confidence.
- Strategic Acquisition Execution: Pinterest completed its acquisition of tvScientific for approximately $465.1 million, aimed at enhancing its capabilities in connected TV advertising analytics, thereby improving ad effectiveness and strengthening market competitiveness.
See More
- Revenue Forecast Boost: Pinterest expects Q2 revenue to range between $1.13 billion and $1.15 billion, surpassing analysts' estimates of $1.11 billion, indicating a positive trend in stable advertising spending and enhancing the company's competitive position in the ad market.
- Significant Stock Surge: Shares of Pinterest jumped 16% in after-hours trading, reflecting investor confidence in the company's enhanced AI advertising products, which may attract more advertisers and further drive revenue growth.
- User Growth Notable: As of Q1, Pinterest reported 631 million global monthly active users, a significant increase from 570 million last year, indicating that its core product remains appealing to consumers seeking inspiration across various interests.
- AI Investment Yielding Results: Pinterest's increased investment in AI, including enhancements to its Performance+ ad suite for automating ad creation and improving personalized targeting, is beginning to show results, helping the company maintain growth in a highly competitive online advertising landscape.
See More
- Strong Earnings Beat: Pinterest's Q1 adjusted earnings per share reached 27 cents, surpassing the 23 cents expected by analysts, with revenue hitting $1.01 billion, exceeding the $966 million forecast, indicating robust market performance.
- Significant User Growth: The company reported an 11% year-over-year increase in global monthly active users to 631 million, aligning with analyst estimates, demonstrating ongoing improvements in user engagement and market penetration.
- Optimistic Future Guidance: Pinterest anticipates Q2 revenue between $1.13 billion and $1.15 billion, higher than Wall Street's $1.11 billion projection, while EBIDTA is expected to range from $256 million to $276 million, reflecting strong profitability prospects.
- Strategic Transformation: The company plans to cut nearly 15% of its workforce and reduce office space to allocate more resources to artificial intelligence, aiming to enhance operational efficiency and competitive positioning, highlighting its commitment to future technological advancements.
See More
- Strong Earnings Report: Reddit's recent earnings report revealed robust management guidance for the current quarter, despite a 36% year-to-date stock decline, indicating solid fundamentals that may attract investor interest.
- AI Training Database: Cramer highlighted Reddit's role as a database of human conversations on the internet, which is crucial for training AI models, underscoring its strategic value and market potential in the AI sector.
- Capital Expenditure Advantage: Unlike other major tech companies, Reddit has not engaged in massive capital spending for AI infrastructure, allowing for greater resource allocation flexibility, which enhances profitability and market competitiveness.
- Positive Market Reaction: The stock surged significantly in after-hours trading, reflecting market recognition of its future growth potential and further solidifying Cramer's bullish outlook on the company.
See More
- Career Transition Success: A 27-year-old professional chose to return to business school, facing a loss of $105,000 in annual income and over $150,000 in loans, but five years later, their salary increased to $215,000, and net worth rose from $113,000 to $400,000, highlighting the significant impact of an MBA on career advancement.
- Return on Educational Investment: Although their net worth dropped to $26,000 upon graduating in 2021, entering the medical device industry led to a substantial salary increase, demonstrating the importance of educational investments for career transitions, particularly in high-paying sectors.
- Importance of Networking and Goals: The individual emphasized that success hinged on effective networking and having clear career objectives rather than solely classroom learning, indicating that social and internship opportunities in business school are crucial for career development.
- Market Risks and Opportunities: Despite numerous success stories, some commenters expressed skepticism about the high debt and uncertain job market, stressing the need for careful consideration of market timing and personal risk tolerance when making significant financial decisions.
See More











