$Reddit(RDDT)$ Meta has a much larger audience, but divide last year's top line by its 2.11 billion daily active users and you arrive at roughly $5 a month. Work the same math on Reddit's $804 million in revenue and the business is generating less than $1 a month for each of its 73 million active users.

The ceiling is high for Reddit. It's a marketer's dream, a largely young audience that isn't typically exposed to brand marketing. Almost a third of them aren't on Facebook. More than half of them aren't on X. A daily logged-in user spends an average of 25 to 30 minutes engaging with the platform, and nearly two-thirds of them have a household annual income greater than $75,000. With more than 100,000 communities, an advertiser can target more effectively to reach an ideal audience. The user base will kick and scream as the ads grow and Reddit rolls out an e-commerce ecosystem.