Jake Lerch, Justin Pope, and Will Healy, The Motley Fool
6 min read
In This Article:
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Reddit's revenue stands at an incredible year-over-year growth rate of 61%.
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AMD’s AI product improvements could inspire a new round of investor interest.
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Meta Platforms' decision to advertise on WhatsApp unlocks a new revenue stream.
We're nearly halfway through 2025, and what a ride it's been for the stock market. As of this writing, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Index are up 2%, up 1%, and down 1%, respectively, year to date.
So, as attention turns to the second half of 2025, three Fool.com contributing analysts have selected their top buys within the technology sector: Reddit (NYSE: RDDT), Advanced Micro Devices (NASDAQ: AMD), and Meta Platforms (NASDAQ: META). Here's why.
Jake Lerch (Reddit): 2025 has been an up-and-down year for Reddit stock. As of this writing, it's down 13% year to date. However, the stock has been extremely volatile throughout the year. It's been up as much as 37% and down by almost 46%.
So, obviously, Reddit isn't a stock for every investor or investment portfolio. That said, growth-oriented investors willing to hold for years might want to take the stock's recent volatility as an opportunity to accumulate shares.
Reddit is a social media stock. It boasts more than 108 million daily average users and is growing fast. As of its most recent quarterly report (for the three months ended on March 31), the company's revenue growth stood at 61%.
The company makes money through selling ad space, like its much larger social media rival, Meta Platforms. While Meta's ad ecosystem has existed for more than a decade and now draws in about a half-billion dollars per day, Reddit's ad ecosystem remains in its infancy.
This creates a possibility for investors. Meta has already proven that the social media advertising model works -- and works very well. Meta has ridden that model to a staggering market capitalization of $1.7 trillion. Reddit, on the other hand, has a market cap of only $26 billion.
In a move that mirrors Meta, Reddit recently announced plans to integrate artificial intelligence (AI)-powered ad tools into its network. This strategy could help marketers increase return on investment (ROI) by improving ad targeting and content.
With its large, increasing user base and blistering revenue growth, there's every reason to think Reddit's long-term prospects remain bright -- and its stock price will rise.