Reddit Surpasses Snap in Market Value Following Election

Reddit Inc. has surpassed Snap Inc. in market value, reaching a valuation of $21.5 billion after a 12% jump on Election Day, compared to Snap’s $20.4 billion. This marks a significant shift in investor sentiment, with Reddit’s growth in user engagement and ad revenue positioning it as a more promising contender in the social media space.

While Reddit’s user base is smaller than Snap’s, it has seen impressive growth. Over the past year, Reddit’s daily active users increased by 47%, boosted by high-profile events like the U.S. elections. This surge in engagement has directly contributed to a rise in ad revenue, enhancing investor confidence in Reddit’s potential for continued expansion.

There is also the notable – and occasionally mocked – fact that Reddit is sometimes used as the “better Google”, and that putting the word “Reddit” alongside a search result gets users the information they actually want. This comes as a response to the rise in SEO-focused and/or AI-generated pages that focus on clicks over content, which has caused many people to instinctively use Reddit as a major source of information.

Snap, in contrast, is facing challenges. The platform’s user growth has stagnated in the U.S. for the past two years, and its revenue growth has been modest, rising from $4.1 billion in 2021 to an estimated $5.3 billion in 2024. This limited growth, particularly in North America, has led to concerns about Snap’s future trajectory in a highly competitive market. While Reddit has never been an especially mainstream social platform compared to apps like Snapchat, it’s growth doesn’t seem to be slowing down any time soon.