The Motley Fool article favors Reddit over The Trade Desk for 2026, citing Reddit’s 18% rise in daily active users to 130.3 million and Trade Desk’s slowdown. Reddit’s FY2025 revenue grew 69.4% to $2.2 billion, and it posted $529.7 million in net income.
The article says The Trade Desk recorded $1.4 billion in first-half 2026 revenue, up 7% year over year, and expected Q3 sales of $650 million, versus $739 million a year earlier. Reddit also licenses conversational data to technology firms for AI training; the article describes these deals as a high-margin supplement to advertising. Reddit’s cited valuation was higher: 19.5x forward P/E and 10.5x price-to-sales, versus 10.9x and 2.0x for The Trade Desk. The figures, from Financial Modeling Prep, may vary by provider.
The article flags Reddit’s exposure to declining user engagement or moderation disputes and its reliance on Apple and Alphabet for app access. The Trade Desk’s risks include two holding companies that each represented more than 10% of 2025 gross billings, clients that can shift spending without exclusive long-term contracts, and changing privacy rules.
