Meta Platforms (META) and Reddit (RDDT) are key players in the social media advertising market, which is projected to grow from $228.18 billion in 2024 to $406.64 billion by 2029, representing a CAGR of 12.25%. Meta boasts over 3.4 billion daily users across its platforms, while Reddit serves 108.1 million daily users.
Reddit anticipates second-quarter 2025 revenues between $410 million and $430 million, showing a year-over-year growth of 46-53%. In contrast, META’s shares are up 24% year to date, highlighting a significant performance disparity as Reddit’s shares have declined by 8.6% in the same period.
Forward-looking earnings estimates indicate Reddit’s 2025 earnings at $1.21 per share, improving from a loss of $3.33 per share in 2024. Conversely, META’s earnings are expected to be $25.35 per share for 2025, reflecting a 6.24% increase over the prior year. Meta’s deep AI integration and diverse revenue sources provide a competitive advantage over Reddit’s more limited monetization capabilities.
