Zacks.com Analyst Blog featured Reddit (RDDT) and Meta Platforms (META) in a comparison of social media stocks. Grand View Research predicts the global digital advertising market to reach $1,164.25 million by 2030, benefiting both RDDT and META. RDDT’s advertising revenue grew 84% in Q2 2025, driven by increased active advertisers and automation tools like Smartly.

META’s AI integration in platforms like Facebook and Instagram has led to a 21.5% increase in advertising revenues in Q2 2025. AI-powered ad recommendation models have improved efficiency and performance, resulting in increased time spent on Facebook and Instagram. META’s AI tools are available in over 200 countries with more than 3.48 billion daily users.

While RDDT and META stocks have rallied in 2025, they are currently overvalued with RDDT trading at 14.79X forward Price/Sales and META at 8.18X. Earnings estimates for RDDT and META show potential growth, with RDDT expected to increase by 154.65% year over year and META by 17.94%. RDDT holds a Zacks Rank #1 while META has a Zacks Rank #2.

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Read more at Nasdaq: The Zacks Analyst Blog Highlights Reddit and Meta Platforms