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RDDT Expands Global Footprint: Can It Stay Ahead of PINS & SNAP?
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Key Takeaways
Reddit's international revenues jumped 84% as DAUq rose 28% and WAUq climbed 35%.
International ARPU rose 31% to $2.26, while global ARPU increased 36% on pricing and impressions.
Advertising revenue surged 64% to $762M as active advertisers grew more than 70%.
Reddit (RDDT - Free Report) is benefiting from the rapid expansion of its global user and advertiser footprint, which is strengthening its competitive position against Pinterest (PINS - Free Report) and Snap (SNAP - Free Report) in the digital advertising market.
In the second quarter of 2026, Reddit’s international revenues surged 84% year over year to $166.8 million, outpacing 56% growth in U.S. revenues. International daily active uniques (DAUq) increased 28% to 77.1 million, while international weekly active uniques (WAUq) jumped 35% to 317.4 million. The expanding international audience strengthens Reddit’s ability to attract global advertisers and compete with social-media platforms such as Pinterest and Snap. Reddit averaged 130.3 million daily active uniques globally in the second quarter, up 18% year over year, while weekly active uniques increased 24% to 514.6 million.
Improving monetization of this expanding overseas audience is another key catalyst. International average revenue per unique (ARPU) increased 31% year over year to $2.26 from $1.73. Meanwhile, global ARPU rose 36% to $6.18 from $4.53, supported by higher advertising pricing and impressions.
Reddit’s advertising momentum should further support its international expansion. Second-quarter advertising revenues jumped 64% year over year to $762 million, supported by higher pricing and impressions. Active advertisers increased more than 70%, while revenues from the scaled channel, which includes mid-market and small and medium-sized businesses, doubled. Management also noted that Rest of World revenues grew more than 80%, reflecting increasingly diversified advertiser demand across markets.
RDDT’s expanding international portfolio and rising user engagement are expected to drive the company’s top-line growth. For the third quarter of 2026, management expects revenues between $860 million and $870 million. The midpoint implies about 48% year-over-year growth.
RDDT Faces Stiff Competition
Reddit is facing stiff competition from Pinterest and Snap. Both companies are also expanding their global footprint to compete in the rapidly growing digital ad market.
Pinterest continues to expand monetization outside its core United States and Canada market through broader advertiser coverage and go-to-market initiatives. In the second quarter of 2026, Europe revenues increased 12% year over year to $213 million, while Rest of World revenues increased 38% to $87 million. Management is applying the UCAN go-to-market approach internationally while refining sales execution.
SNAP is benefiting from strong international expansion, as evidenced by its global monthly active users reaching 493 million daily active users in the second quarter of 2026, up 5% year over year. Snap reported 971 million monthly active users (MAU), up 4% year over year, moving closer to the company’s long-stated goal of 1 billion MAUs.
RDDT’s Share Price Performance, Valuation and Estimates
Reddit shares have plunged 33.6% year to date, underperforming the broader Zacks Computer & Technology sector’s 21.9% appreciation and the Internet - Software industry’s increase of 11.4%.
RDDT Stock Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 6.98X compared with the Computer & Technology sector’s 6.18X. RDDT has a Value Score of D.
RDDT Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $5.27 per share, which has decreased 1.12% over the past 30 days. This suggests 101.15% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
RDDT Expands Global Footprint: Can It Stay Ahead of PINS & SNAP?
Key Takeaways
Reddit (RDDT - Free Report) is benefiting from the rapid expansion of its global user and advertiser footprint, which is strengthening its competitive position against Pinterest (PINS - Free Report) and Snap (SNAP - Free Report) in the digital advertising market.
In the second quarter of 2026, Reddit’s international revenues surged 84% year over year to $166.8 million, outpacing 56% growth in U.S. revenues. International daily active uniques (DAUq) increased 28% to 77.1 million, while international weekly active uniques (WAUq) jumped 35% to 317.4 million. The expanding international audience strengthens Reddit’s ability to attract global advertisers and compete with social-media platforms such as Pinterest and Snap. Reddit averaged 130.3 million daily active uniques globally in the second quarter, up 18% year over year, while weekly active uniques increased 24% to 514.6 million.
Improving monetization of this expanding overseas audience is another key catalyst. International average revenue per unique (ARPU) increased 31% year over year to $2.26 from $1.73. Meanwhile, global ARPU rose 36% to $6.18 from $4.53, supported by higher advertising pricing and impressions.
Reddit’s advertising momentum should further support its international expansion. Second-quarter advertising revenues jumped 64% year over year to $762 million, supported by higher pricing and impressions. Active advertisers increased more than 70%, while revenues from the scaled channel, which includes mid-market and small and medium-sized businesses, doubled. Management also noted that Rest of World revenues grew more than 80%, reflecting increasingly diversified advertiser demand across markets.
RDDT’s expanding international portfolio and rising user engagement are expected to drive the company’s top-line growth. For the third quarter of 2026, management expects revenues between $860 million and $870 million. The midpoint implies about 48% year-over-year growth.
RDDT Faces Stiff Competition
Reddit is facing stiff competition from Pinterest and Snap. Both companies are also expanding their global footprint to compete in the rapidly growing digital ad market.
Pinterest continues to expand monetization outside its core United States and Canada market through broader advertiser coverage and go-to-market initiatives. In the second quarter of 2026, Europe revenues increased 12% year over year to $213 million, while Rest of World revenues increased 38% to $87 million. Management is applying the UCAN go-to-market approach internationally while refining sales execution.
SNAP is benefiting from strong international expansion, as evidenced by its global monthly active users reaching 493 million daily active users in the second quarter of 2026, up 5% year over year. Snap reported 971 million monthly active users (MAU), up 4% year over year, moving closer to the company’s long-stated goal of 1 billion MAUs.
RDDT’s Share Price Performance, Valuation and Estimates
Reddit shares have plunged 33.6% year to date, underperforming the broader Zacks Computer & Technology sector’s 21.9% appreciation and the Internet - Software industry’s increase of 11.4%.
RDDT Stock Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 6.98X compared with the Computer & Technology sector’s 6.18X. RDDT has a Value Score of D.
RDDT Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $5.27 per share, which has decreased 1.12% over the past 30 days. This suggests 101.15% year-over-year growth.
Reddit Inc. Price and Consensus
Reddit Inc. price-consensus-chart | Reddit Inc. Quote
RDDT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.