Reddit’s Stock Soars 97% in Six Months: Should Investors Consider Buying?

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Reddit Inc. (RDDT) shares rose 96.7% over the past six months, significantly outperforming the Zacks Computer & Technology sector’s increase of 27.4% and the Zacks Internet – Software industry’s decline of 4.9%. During this period, revenue from advertising surged 74% year over year to $549 million.

As of the third quarter of 2025, Reddit reported 116 million daily active users and 444 million weekly active users, both up 20% from the previous year. The Average Revenue Per User (ARPU) increased 41% year over year to $5.04. The company anticipates fourth-quarter revenues between $655 million and $665 million, with the Zacks Consensus Estimate at $668.52 million.

RRDT has expanded its advertiser base by over 75% year over year, driven by the introduction of tools such as Dynamic Product Ads and Reddit Pixel. The company’s international ARPU rose 39% year over year to $1.84, largely attributed to investments in AI tools and localized content strategies.

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