"It's a great sign that Reddit's advertising revenue continues to grow at a significantly faster rate than its daily active user base. Reddit is experiencing strong growth, with daily active users increasing by 19% year over year in the last quarter. This translated to an impressive 68% year-over-year increase in advertising revenue, and there's a good explanation for this growth."
""Reddit" is one of the most frequently searched keywords on Alphabet's Google. People are specifically seeking out Reddit to find helpful answers on various topics, including product reviews. This also means Reddit is attracting people who may have high purchase intent when shopping, which is valuable to advertisers. This makes Reddit unique in the social media landscape, and the company is clearly monetizing its user base effectively."
Reddit has 116 million daily active users and is the third-most-visited site in the U.S., trailing only YouTube. Daily active users increased 19% year over year in the last quarter while advertising revenue rose 68% year over year. High search interest for "Reddit" on Google drives users seeking product reviews and answers, which appears to attract people with high purchase intent valuable to advertisers. Analysts expect earnings-per-share to grow at an annualized 42% rate in coming years. A $1,000 investment could potentially double by 2030 if current growth continues. The Motley Fool recommends Reddit and holds positions in Alphabet.
Read at www.fool.com
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