AppLovin and Reddit show distinct revenue growth patterns despite both relying on digital advertising. AppLovin generates revenue through its digital software suite, including AppDiscovery for mobile app marketing, whilst Reddit operates an internet platform for community discussions. For the quarter ended June 30, 2026, AppLovin reported $1.9 billion in revenue with a 78% operating margin. Reddit posted $804.9 million with a 29% operating margin for the same period. AppLovin's quarterly revenue has grown steadily from $835.2 million in Q3 2024 to $1.9 billion in Q2 2026. Reddit's revenue increased from $348.4 million to $804.9 million over the same period, though with more volatility. Both companies experience seasonal patterns, with advertiser spending typically increasing during fourth-quarter holiday shopping periods. Reddit recently joined the S&P 500 index and launched new automated campaign management tools for advertisers.

Reddit stock surged 9.3% to $158.10 following a Baird research note suggesting the market has already priced in the worst outcome for two AI data licensing contracts up for renewal in 2027. However, the note did not address Reddit's more pressing challenge: declining search referrals as AI systems change how users find content. While advertising generated 95% of Reddit's $805 million Q2 revenue, AI Overviews has yet to match traditional search traffic. Reddit holds a $30 billion market capitalisation on $2.78 billion in trailing twelve-month revenue. The company reaches over half a billion weekly users and 130 million daily users, targeting 1 billion daily users globally. The stock trades 42% below its 52-week high of $270.71.

Reddit (RDDT) stock pops 9% as wall street shrugs off Google deal worries. Reddit (RDDT) stock rose 9.3% after a Baird analyst said Google contract renewal fears are already priced in, with the $130M deal set to expire next year. By Trader Edge September 3, 2026 3 Mins Read Tldr. * Reddit stock rose 9.3% to $158.10 on Wednesday, making it one of the top performers in the S&P 500 * Baird analyst Colin Sebastian said the market has already priced in a weak or flat renewal of Reddit's Google data deal * The Google data licensing contract, worth about $130 million in revenue, expires early next year * Reddit posted strong Q2 earnings with EPS of $1.25 vs $0.95 expected, and revenue up 61% year over year to $804.91 million * Analysts hold a consensus "Moderate Buy" rating with an average price target of $221.10 Reddit (RDDT) stock jumped 9.3% to $158.10 on Wednesday, landing it as the second best-performing stock in the S&P 500 for the day. The move came after Baird analyst Colin Sebastian said the market has already "largely priced in" a weak or flat renewal of Reddit's data licensing deal with Google. In plain terms, even if the deal comes back smaller, the stock likely won't take a big hit. That contract, which brings in around $130 million in annual revenue for Reddit, is due to expire early next year. Renewal talks are ongoing. Sebastian said a weaker renewal won't necessarily hurt the stock, but a better-than-expected deal could push the price up by $10 to $20 per share. One sticking point in the negotiations is how Reddit's content gets displayed and linked within Google's products. AI search platforms like Google and OpenAI want to keep users on their own platforms to protect ad revenue, which creates tension with Reddit's content goals. Reddit's advertising engine has pulled in $2.6 billion in revenue over the past four quarters. Earnings beat gives bulls something to point to. Reddit's most recent quarterly results were strong. The company posted EPS of $1.25 for Q2, well above the $0.95 analysts expected. Revenue came in at $804.91 million, up 61% from the same period a year ago and ahead of the $731 million forecast. During the same quarter last year, Reddit posted EPS of just $0.45, making the year-over-year jump hard to ignore. Net margin stood at 31.35% and return on equity came in at 29.02%. Analysts now expect Reddit to post full-year EPS of $5.27. User growth slowing down. Despite the strong financials, user growth has been cooling. Daily active users globally grew 17% year over year in Q1 and 18% in Q2. A year earlier, those same figures were 31% and 21%. The trend is moving in the wrong direction, even if the numbers are still positive. On the analyst front, the picture is mixed. Loop Capital has a $260 price target, Needham sits at $300, and B. Riley raised its target to $270. Zacks recently cut its rating from "strong buy" to "hold." The consensus across 31 analysts sits at "Moderate Buy" with an average target of $221.10. Insider selling has picked up. Over the past 90 days, insiders have sold roughly $33.7 million worth of stock. Director Robert Sauerberg sold 5,128 shares at $159.92 on August 25th, cutting his position by 15.92%. Reddit's 50-day moving average sits at $170.91, while the 200-day moving average is $158.53. The stock has a market cap of $29.57 billion and a beta of 2.02. Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions - all in one powerful platform. Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount. Limited Time Offer Get 3 free stock ebooks. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis. * Top 10 AI Stocks - Leading AI companies * Top 10 Crypto Stocks - Blockchain leaders * Top 10 Tech Stocks - Tech giants Futures & Crypto Trader | Sharing charts, strategies, & mindset tips to help you level up | Not Financial Advice Follow on X @Pro_Trader_Edge September 3, 2026