RDDT vs. AMZN: Which Digital Advertising Stock Is a Better Buy?

Zacks compares Reddit and Amazon as digital-advertising plays, noting Reddit’s rapid ad-revenue expansion and Amazon’s larger, higher-margin ad business. Reddit reported Q1 2026 revenue of $663M (up 69% YoY) with ad revenue up 74% to $625M and active advertisers rising >75%, driven by AI tools like Reddit Max. Amazon Ads generated $17.2B in Q1 (up 22% YoY) as Amazon rolls out AI features (Creative Agent, Rufus Brand Prompts) and Amazon Audiences for Netflix placements. Year-to-date, RDDT shares have fallen ~32% while AMZN is up ~15.8%. Valuation metrics show RDDT trading at a 12-month forward P/S of 9.46x vs. AMZN at 6.51x. Zacks concludes Reddit offers greater upside potential from faster ad growth and ROAS gains, while Amazon’s scale and diversification make it more resilient but with some financial/headwind concerns.