TLDR
- Reddit stock rose more than 6% after Piper Sandler data showed user growth accelerated 8% month over month in August, the strongest monthly increase of 2026.
- Total audience growth hit 18% year over year in August, up from 12.8% in July.
- International users led the charge, growing 29.3% year over year, up from 19% in July.
- Piper Sandler also raised its Q3 ad-spending growth estimate for Reddit by 30 basis points.
- A one-time reset in September audience estimates of around 20% is expected due to Ads Manager methodology changes, not a decline in users.
Reddit (RDDT) stock climbed more than 6% on Thursday, snapping a four-session losing streak. The catalyst was fresh data from Piper Sandler showing a sharp pickup in user growth during August.
RDDT was trading at $156.42 before the move. The stock is still down 35.3% year to date and sits 42.2% below its 52-week high of $270.71 from September 2025.
Piper Sandler’s analysis of Reddit Ads Manager data showed average users rose 8% month over month in August. That was the strongest monthly gain of the year and followed a 2% decline in July.
Year-over-year audience growth accelerated to 18% in August, compared with 12.8% in July.
International Growth Leads the Way
The international audience was the main driver. Piper Sandler reported international user growth hit 29.3% year over year in August, up from 19% in July.
US users grew 5.2%, but domestic growth continued to trail the international segment.
Feed users added 79 million users in August. Conversation users dropped by 1 million over the same period.
Reddit’s own Q2 results add context here. International daily active uniques rose 28% year over year to 77.1 million, while US daily active uniques grew 6% to 53.2 million. Weekly active uniques crossed 500 million, hitting 514.6 million, up 24% year over year.
The platform’s Q2 revenue came in at $805 million, up 61% year over year. International revenue climbed 84% to $167 million.
Advertising Outlook Gets a Boost
The user growth numbers matter for Reddit’s ad business. More users typically means more inventory and potentially more ad revenue.
Piper Sandler said August ad spending across its digital advertising dataset came in 60 basis points above expectations. Netflix, Roku, YouTube and Pinterest were among the standout performers in that dataset.
Piper raised its Q3 advertising spending growth estimate by 30 basis points and did the same for Reddit’s own Q3 ad-spending growth estimate.
Despite the positive trends, Piper flagged a wrinkle. Changes to Reddit’s Ads Manager forecasting model are expected to cut September audience-size estimates by around 20%.
Piper was clear that this is a methodology change, not a sign of slowing growth. The reset will not affect ad auctions, optimization or delivery.
It is worth noting that Reddit is also navigating regulatory pressure in Europe. The EU recently added Reddit to its strictest tier under the Digital Services Act, classifying it as a Very Large Online Platform. That designation requires compliance with stricter anti-harm rules and systemic risk assessments by the end of December 2026, or Reddit could face fines of up to 6% of annual global revenue.
RDDT has made moves greater than 5% on 59 separate occasions over the past year, so Thursday’s jump, while welcome, fits the pattern for this stock.
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