- Reddit (TSX:RDDT) began trading on Bay Street in October, and is recently up around 10 per cent; NYSE shares have grown nearly 30 per cent in 2025 and 50 per cent year-over-year
- Q3 earnings beat expectations with US$585 million revenue (+68 per cent) and ad sales up 74 per cent; the company reached profitability earlier than anticipated
- Overseas users now 55 per cent of daily active base; leveraging AI for translation, search, and licensing deals with OpenAI and Google to create new revenue streams without heavy infrastructure costs
- Reddit stock (TSX:RDDT) closed trading at C$20.60
Reddit is a global social media platform built around user-generated content and community-driven discussions. With billions of posts across hundreds of thousands of communities, it has become a cornerstone of online engagement. In October, Reddit began trading on the Toronto Stock Exchange under the ticker RDDT, marking a significant milestone in its international growth strategy.
Sector strength: Communication Services getting all the upvotes
Reddit’s entry into public markets comes at a time when communication services have been one of the most consistent major sectors in the S&P 500 for 2025, ranking in the top three for year-to-date performance. This sector strength provides a favourable backdrop for Reddit’s expansion and investor confidence.
Sort by: New – Global growth and AI-strategy
International expansion is accelerating, with overseas users now accounting for 55 per cent of Reddit’s daily active base. The company is leveraging localized content strategies and AI-powered translation tools to penetrate new markets. Analysts believe these efforts will drive future advertising gains, as ad revenue surged 74 per cent year-over-year. Most analysts remain bullish on Reddit’s long-term global growth potential.
Market reaction and stock performance
While it’s early to gauge Reddit’s TSX performance, the company has shown strong momentum on the New York Stock Exchange, where shares have grown nearly 30 per cent in 2025 and are up 50 per cent since last year. On the TSX, Reddit recently climbed about 10 per cent last week, trading around C$20 per share. This suggests growing investor interest in the Canadian market.
Business highlights investors should know
Reddit’s Q3 earnings beat expectations, reporting revenue growth of 68 per cent to US$585 million and ad sales up 74 per cent. Importantly, the company reached profitability earlier than anticipated, signaling operational efficiency and strong demand for its advertising products.
Betting big on AI without big costs
In an era where AI dominates investor conversations, Reddit is carving a unique path. Rather than incurring massive infrastructure costs like larger tech rivals, Reddit is monetizing its user-generated content through licensing deals with OpenAI and Google, creating a new revenue stream. AI also powers machine translation into 30 languages and search improvements, attracting more users and advertisers globally.
A stock with good karma?
Reddit’s TSX listing offers exposure to a fast-growing social media platform with strong international momentum, innovative AI strategies, and a proven ability to monetize its vast content ecosystem. With sector tailwinds and bullish analyst sentiment, Reddit could be a compelling addition for investors seeking growth in the communication services space.
Reddit stock (TSX:RDDT) closed Thursday trading 1.73 per cent higher at C$20.60.
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