Reddit posts 69% revenue growth with strong margins, plans to double U.S. daily users, maintaining buy rating.

Reddit reported a 69% year-over-year revenue increase and a strong GAAP net margin of 30.8%, driven by a 44% rise in average revenue per user. Management plans to grow revenue by 45% next quarter and aims to double U.S. daily active users through investments in its feed and partnerships like Shopify. Despite a premium valuation of about 30 times earnings, the company's growth, profitability, and monetization potential support a positive outlook. The analyst maintains a buy rating, highlighting Reddit's strong financial health and growth strategy amid near-term risks.