Reddit (RDDT) reported a significant revenue growth of 69% year-over-year in Q1 2026, reaching $663 million, with advertising revenue alone growing 74% to $625 million. This marks Reddit’s seventh consecutive quarter of revenue growth above 60%. In contrast, Amazon (AMZN) generated $17.2 billion from advertising in the same period, a 22% increase year-over-year, highlighting the importance of digital advertising in both companies’ business models.
In terms of advertising tools, Reddit’s innovations, including Dynamic Product Ads and AI-powered campaign tools, have been pivotal, with active advertisers growing by over 75% year-over-year. Meanwhile, Amazon is enhancing its advertising offerings with AI integration, making campaigns more accessible for brands. Despite Reddit’s rapid growth, its share price has fallen 32% year-to-date, while Amazon’s has gained 15.8% amid its broader business expansion across multiple sectors.
Current estimates predict Reddit’s earnings for 2026 will be $4.83 per share, an 84.35% rise year-over-year, while Amazon’s earnings are projected at $8.85 per share, marking a 23.43% increase. Both companies share a Zacks Rank of #3 (Hold), with Reddit demonstrating stronger upside potential in the advertising sector.
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