Reddit (RDDT) and Meta Platforms (META) are leading social media platforms in the digital advertising market. RDDT is gaining traction with community-driven advertising, while Meta dominates with platforms like Facebook and Instagram. The global digital advertising market size is expected to reach $1,164.25 million by 2030, benefiting both RDDT and META.

RDDT is experiencing strong user engagement, with a 74% increase in advertising revenues in the third quarter of 2025. The company’s investment in AI-powered tools has led to a 20% year-over-year increase in daily active users. RDDT is also expanding its reach with features like Reddit Answers in multiple languages.

Meta Platforms is integrating AI into its platforms to drive user engagement and boost ad revenues. Advertising revenues increased 25.6% year over year in the third quarter of 2025, accounting for 97.7% of total revenues. Meta’s AI tools are helping advertisers optimize their ad creatives and improve performance.

Despite facing challenging macroeconomic conditions and regulatory headwinds, META’s AI services show promise for future growth. RDDT and META stocks have different valuations, with RDDT trading at a higher forward 12-month Price/Sales ratio. Earnings estimates for RDDT and META show positive growth projections, with RDDT expected to see a significant year-over-year rise.

In conclusion, RDDT offers greater upside potential in the digital advertising market compared to META. RDDT’s rapid revenue growth and expanding engagement tools make it a strong pick with a Zacks Rank #1 (Strong Buy). META’s focus on AI services presents growth opportunities but may take time to monetize.

Read more at Nasdaq: RDDT vs. META: Which Digital Advertising Stock Is a Better Buy?