Reddit Inc. (RDDT) reported first-quarter revenues of $392 million for the period ending in Q1 2023, reflecting a 61% year-over-year growth. However, RDDT’s stock has declined 10.3% year-to-date due to rising competition in the digital advertising space, particularly from major players like Meta Platforms and Alphabet.
In terms of profitability, the Zacks Consensus Estimate for Reddit’s 2025 revenues stands at $1.85 billion, which signifies a 42.07% increase. Despite user engagement increasing—Daily Active and Weekly Active users grew 31% year-over-year, reaching 108.1 million and 401 million respectively—RDDT faces challenges due to macroeconomic pressures and heightened competition, leading to a Zacks Rank of #4 (Sell) for the stock.
