Reddit RDDT has gained popularity among investors, particularly traders, due to its community-led platforms like WallStreetBets, which have fueled the meme stock phenomenon with stocks like GameStop GME and AMC Entertainment AMC.

Reddit’s advertising revenue soared by 84% in Q2 to $465 million, driven by a 50% increase in active advertisers and a 47% rise in average revenue per user (ARPU) to $4.53. Tools like Reddit Pixel and CAPI are boosting user conversion and tracking data, with Q2 sales reaching $499.63 million.

With a 32% increase in international daily active users (DAU) to 60.1 million in Q2, Reddit’s global revenue surged by over 70%. The company’s log-out users also grew to 61.1 million, expanding its reach beyond its core community.

Reddit reported its first profitable quarter in Q2 2025, with an adjusted net income of $89 million. Gross margins hit a peak of 90.8%, with analysts projecting a net profit of over $150 million for the year. EPS for Q2 was $0.45, exceeding expectations and showcasing strong growth potential.

Analysts are bullish on Reddit stock, with a Zacks Price Target of $223.72 suggesting 8% upside. JMP Securities and Piper Sandler have raised their price targets to $300 and $290, respectively. With a growing user base and strong advertising revenue, Reddit looks poised for further growth.

Read more at Nasdaq: Bull of the Day: Reddit (RDDT)