Reddit Surges on Strong User Growth; Pinterest and Snap See Modest Gains
Reddit (NYSE:RDDT) rose by 6% following third-party data from Piper Sandler showing an 8% month-over-month user growth in August, the fastest pace of the year. The increase was driven largely by international users growing at a 29.3% annual rate compared to 19% in July. Pinterest (NYSE:PINS) gained 2%, while Snap's ETF SOCL slipped slightly despite broader gains among social media stocks. The rally comes after Reddit had declined 33% year-to-date, with the current stock price significantly below its average analyst price target of $213.10. The market reaction suggests renewed investor confidence in Reddit’s user growth and advertising potential following a prior month's decline. However, Piper Sandler also noted that changes to Reddit's ads manager model are expected to lead to a 20% reset in reported audience size soon. The broader social media sector did not experience a coordinated rally; instead, individual stocks like Reddit led the gains while others remained flat or declined slightly.
Topics: Pinterest Reddit Snap social media stocks user growth