Reddit (RDDT) and Meta Platforms (META) are both active players in the social media advertising arena, with distinct growth trajectories reported in the second quarter of 2026. Reddit’s ad revenues surged by 64% year-over-year to $762 million, driven by a strong performance across various sales channels. Meanwhile, Meta reported $59.4 billion in ad revenue, a 27% increase, supported by AI-driven enhancements leading to better ad targeting and user engagement.
Reddit’s innovation, particularly its AI-driven advertising suite Reddit Max, contributed to a 150% revenue increase from Max campaigns, while the active advertiser base grew over 70%. Meta, with 3.6 billion daily active users, has also expanded its AI capabilities, benefiting 9 million small businesses using its tools. However, Meta faces margin pressures due to significant AI investments and heightened regulatory scrutiny.
Both companies’ stocks have faced declines this year, with RDDT down 28.4% and META down 13.8%. Analysts project Reddit’s Q3 2026 revenue between $860 million and $870 million, marking a 47-49% year-over-year growth, while Meta’s earnings for the same period are estimated at $31.90, reflecting a 35.8% increase. Reddit holds a Zacks Consensus Estimate for earnings of $5.22 per share, up 99.24% year-over-year, while META’s estimate has decreased by 3.45% but remains positive.
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