RDDT Stock Climbs as Global Audience and Ad Trends Show Improvement

TLDR

• Reddit shares rose more than 6%, ending a four-session losing streak after stronger August user data.
• Reddit’s average users increased 8% month over month, marking its strongest monthly growth of 2026.
• International audience growth reached 29.3% year over year, far outpacing the 5.2% increase in US users.
• Feed users added 79 million in August, while Conversation users declined by about 1 million.
• Piper Sandler raised its third-quarter advertising growth estimate as August ad spending came in above expectations.

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Reddit (RDDT) shares climbed more than 6% on Thursday after new Piper Sandler data pointed to stronger user growth in August. RDDT stock ended a four-session losing streak as investors responded to improved audience trends and stronger international growth. Reddit’s average users increased 8% month over month in August, the strongest monthly gain this year. The increase followed a 2% decline in July and came as Feed users expanded faster than Conversation users.

Reddit, Inc., RDDT

RDDT Stock Gains on August Audience Growth

Piper Sandler said Reddit’s total audience grew 18% year over year in August, up from 12.8% in July. Feed users added 79 million during the month, while Conversation users fell by about 1 million. Weekly user momentum also remained firm from early July.

Piper Sandler said the International Feed drove much of that growth, supporting the positive move in RDDT stock on Thursday. International audience growth accelerated to 29.3% year over year in August, compared with 19% in July. US users increased 5.2%, leaving domestic growth below the pace recorded across overseas markets.

Reddit’s second-quarter figures showed a similar pattern. International daily active uniques increased 28% to 77.1 million, while US daily active uniques rose 6% to 53.2 million. Global daily active uniques reached 130.3 million. Reddit’s weekly active uniques also reached 514.6 million in the second quarter, rising 24% from a year earlier. That broader audience gives the company more users across both domestic and international markets.

Advertising Trends Add Support

Piper Sandler said August ad spending across its digital advertising dataset came in 60 basis points above expectations. The brokerage also raised its estimate for third-quarter advertising spending growth by 30 basis points. Its estimate for Reddit’s third-quarter ad-spending growth also increased by 30 basis points. Reddit reported second-quarter revenue of $805 million, up 61% year over year, while international revenue rose 84% to $167 million.

Piper Sandler warned that Reddit’s Ads Manager forecasting model will change in September. The adjustment could lower reported audience-size estimates by about 20%, even if underlying user activity remains stable. The brokerage said the reset reflects a methodology change rather than weaker platform demand. The change will affect forecasting but should not alter auctions, optimization, or ad delivery. Piper’s estimates also remain separate from Reddit’s official daily active unique figures.

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Source: https://blockonomi.com/rddt-stock-climbs-as-global-audience-and-ad-trends-show-improvement/