Prediction: Reddit Will Be a Millionaire-Maker Stock
Reddit (NYSE: RDDT) went public in 2024, nearly 20 years after the social media site launched. The company has been slow to monetize its massive user base, but that effort is now kicking into high gear. Reddit generated $465 million in revenue from advertising in the second quarter, up 84% year over year, as it grew its user base and invested in its advertising platform. While the stock has already soared since the IPO, Reddit could be worth a lot more down the road, minting stock market millionaires in the process.
Image source: Getty Images.
What makes Reddit special in the world of social media? Users turn to Reddit to find answers, product recommendations, and other information rather than to search engines. Out of Reddit's 416 million weekly active users in Q2, 70 million searched directly on Reddit, and 6 million used the company's artificial intelligence (AI)-powered Reddit Answers feature. Countless more undoubtedly tacked "reddit" onto their Google search query, knowing that Reddit would provide better information than generic search results.
Source Fool.com
