Core Insights - Reddit's stock has nearly doubled since a significant dip in April, resulting in a 25% gain over the past 12 months, driven by strong advertising revenue and daily active user growth [1] - The company is establishing a trusted brand that users turn to for information, which may enhance long-term stock performance [1] Advertising Revenue Growth - Advertising constitutes over 90% of Reddit's total revenue, with a 74% year-over-year increase in ad revenue in the third quarter, fueled by more ads shown and higher pricing [3] - The platform's ability to attract 116 million daily active users indicates strong demand from brands [3] User Engagement and Brand Strength - Reddit is increasingly recognized as a valuable resource for product reviews, giving it a competitive advantage over image-driven platforms like Instagram [4] - The term "Reddit" is among the most searched on Google, with over 75 million weekly searches, reflecting its growing brand strength [5] Market Trends - Research from PwC predicts that by 2029, the global advertising market will surpass consumer spending by $300 billion, with a 6% compound annual growth rate in advertising compared to 2% for consumer spending [6] - Reddit is well-positioned to benefit from this trend, with its conversation-driven platform expected to capture a larger share of the advertising market [8]