As a result of the success of the digital advertising business, Reddit is also benefiting.
With fourth-quarter revenue of $428 million on Wednesday, Reddit recorded the greatest growth rate for any quarter since 2022, up 71% from the previous year.
Reddit’s expanding sales show a particularly healthy digital ad market, despite the fact that its shares fell due to lower-than-expected user numbers, a senior director at Emarketer.
“For an indication of the general health of the ad market, investors usually look to the financial performance of tech giants like Meta, Alphabet, and Amazon,” Goldman said.
Goldman, the fact that Reddit’s sales increased dramatically in tandem with those of the larger players indicates that advertisers are confident enough to “diversify to a platform that’s more fledgling, like Reddit, and say ‘We’re prepared to throw some bucks at this thing that don’t really understand,’“.
Source (CNBC)
