1. Reddit (RDDT) shares have surged 49.6% in the past month due to strong Q2 2025 results and solid Q3 guidance. Earnings were 45 cents per share, beating estimates by 25 cents. Revenues of $499.63 million surpassed estimates by 16.9% and grew 77.9% year over year.
2. Reddit’s YTD performance has seen a 33.5% jump, outperforming the Computer & Technology sector. The stock is trading above the 50-day and 200-day moving averages, signaling a bullish trend. Shares have outperformed peers like Meta Platforms, Alphabet, and Snap.
3. Reddit’s expanding portfolio includes performance marketing solutions like Shopping Ads and Dynamic Product Ads, driving higher returns on ad spend. Advertising revenues surged 84% year over year to $465 million in Q2. Continued growth is expected in Q3 with new formats and partnerships.
4. Reddit’s authentic content drives AI-powered global expansion, attracting advertisers and users. AI features like Reddit Answers have seen significant growth. International Daily Active Uniques (DAUq) grew 32% YoY. Focus markets like France and Spain are key contributors to international growth.
5. Reddit stock trades at a premium with a forward 12-month P/S ratio of 16.5X, higher than the industry average. The company’s accelerating advertising momentum and expanding global user base justify its premium valuation. Reddit currently holds a Zacks Rank #1 (Strong Buy) and Growth Score of B.
6. For more detailed analysis and free stock recommendations for the next 30 days, visit Zacks Investment Research. Reddit Inc. (RDDT) is one of the 7 Best Stocks highlighted in the report. Additional free stock analysis reports for Meta Platforms, Alphabet, and Snap are also available.

Read more at Nasdaq: Reddit Surges 50% in a Month: Is the Stock Still Worth Buying?