Reddit (RDDT) is targeting international markets, specifically countries like India and Brazil, to attract more users and explore new revenue streams for advertising. In a recent interview with CNBC, Jen Wong, Reddit’s COO, pointed out that around 50% of the social media platform’s users are located in international markets.
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As a result, Wong told CNBC, “So that points to a lot of our future user growth opportunity definitely outside of the U.S. and local language.” Furthermore, Wong explained that each language presents a unique opportunity to localize the Reddit platform.
Interestingly, while international users account for 50% of RDDT’s user base, these users comprised just over 17% of the company’s revenues in the third quarter.
RDDT’s Strategy to Bolster its Advertising Revenue
Wong also pointed out that the company’s strategy to increase its advertising revenue share begins with cross-border advertising for international markets. Cross-border advertising is matching global brands with U.S. audiences. Once Reddit captures around 10% of a country’s internet population, it plans to build local advertising teams, enabling brands to target regional audiences more effectively.
India Is a Promising Market for RDDT
RDDT views India, in particular, as a promising market. In fact, according to Wong, India is one of Reddit’s fastest-growing markets alongside the U.K., the Philippines, and Brazil. Furthermore, Won pointed out that India has a large English-speaking population, and plenty of Indian RDDT users are engaged in discussions around popular topics like cricket and Bollywood.
RDDT Is Working on Tools to Improve Its Platform
In order to enhance its global appeal, Reddit is investing in technology and has introduced AI-driven translation features this year, with plans to support 20 to 30 languages by year-end. Additionally, Reddit is improving its search feature to enhance user navigation and discovery, an area CEO Steve Huffman described as a “focused investment” for 2025.
What Is the Target Price for RDDT Stock?
Analysts remain cautiously optimistic about RDDT stock, with a Moderate Buy consensus rating based on 10 Buys, five Holds, and one Sell. Over the past six months, RDDT has surged by more than 100%, and the average RDDT price target of $106.88 implies a downside potential of 21.2% from current levels.
