Reddit (RDDT) reported a significant surge in advertising revenues in Q3 2025, reaching $549 million, a 74% increase year over year. The company reported 116 million daily active users and 444 million weekly active users, both up 20% year over year, as it expands advertising tools and integrates AI-powered features. Additionally, over 75 million weekly searches on Reddit were logged in Q3.
Meta Platforms (META) reported advertising revenues of $50.08 billion for the same period, a 25.6% increase year over year, with 97.7% of its revenues coming from ads. The company noted a 5% increase in time spent on Facebook and a 30% increase on Threads, driven by improvements in AI systems. However, META’s stock has seen a 7.8% decline in the past six months while RDDT has surged by 73.1%.
Both companies are poised to benefit from a booming digital advertising market expected to grow from $488.4 million in 2024 to $1,164.25 million by 2030. However, RDDT is currently ranked #1 (Strong Buy) by Zacks, in contrast to META’s #3 (Hold) ranking.
