Reddit (RDDT 3.55%), which owns one of the world's top social news aggregation platforms, went public nearly two years ago at $34 per share. Today, its stock trades at almost $150 -- but it could still turn a modest $1,000 investment into a lot more money over the next decade.
How fast is Reddit growing?
Reddit is sometimes considered a social media platform, but it's more of an open discussion forum that aggregates news stories and other trending topics. That unique structure gives the company plenty of data to craft targeted ads while making it an attractive source of human-generated responses in a sea of websites curated by search engines. Reddit has also been expanding its Premium tier, which offers ad-free browsing and additional perks.
Image source: Getty Images.
At the end of 2025, Reddit hosted 121.4 million daily active unique (DAUq) visits, with 50.7 million logged-in DAUq visitors (who are generally easier to monetize than its logged-out visitors). That's up from just 101.7 million DAUq visitors and 46.1 million logged-in DAUq visitors at the end of 2024.
For the full year, its revenue rose 69% to $2.2 billion, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly tripled to $845 million. It also turned profitable for the first time under generally accepted accounting principles (GAAP).
Reddit's growth was driven by its overseas expansion, new AI-driven ad tools that attracted a broader range of advertisers, AI search tools, and referrals from Alphabet's (GOOG 1.69%) (GOOGL 1.66%) Google Gemini and OpenAI's ChatGPT, which both tapped Reddit as a source of human-generated responses. Major news events also drew in more users.
NYSE: RDDT
Key Data Points
How much upside potential does it have?
From 2025 to 2028, analysts expect Reddit's revenue and adjusted EBITDA to grow at CAGRs of 33% and 42%, respectively. With an enterprise value of $24.7 billion, it still looks surprisingly undervalued at 19 times this year's adjusted EBITDA.
If Reddit matches analysts' estimates and trades at a more generous 25 times its forward adjusted EBITDA by the start of 2028, its stock could surge more than 140% over the next two years. Yet it could grow even larger as the growing social media, social news, and online search markets converge. Reddit is well-positioned to dominate the crossroads of those markets, and the volatile news cycle will draw even more people into heated discussions on its platform.
