Reddit Rises 6% as User Growth Hits Fastest Pace of the Year, Pinterest Ticks Up, Snap Barely Budges

Reddit (RDDT) expects Q3 revenue of $860M-$870M, following 61% YoY growth in Q2. US daily active users rose 6% to 53.2M, but US revenue grew 56%, indicating higher ad spending per user. Average US revenue per user reached $11.85, up 51% YoY. Operating margin is 28.25% over the past 12 months. CEO Steve Huffman noted volatility in search referrals but improved user retention.

Australia is preparing to sue Meta, TikTok, Snap, and YouTube for failing to prevent under-16s from accessing their platforms, marking the first such legal action by a democratic government. The case follows new laws requiring platforms to take 'reasonable steps' to restrict access, with penalties up to A$109.2 million per violation. The eSafety Commissioner is using expanded powers to gather evidence for Federal Court proceedings.

Australia plans to sue Meta (META), ByteDance (BDNCE), Snap (SNAP), and Google (GOOGL) for allegedly failing to enforce a ban on social media use for under-16s, according to Bloomberg.

Snap Inc. (SNAP) shares rose 16% in October after activist investor Blue Duck Capital valued its unreleased AR glasses (Specs) at $5B, ~50% of Snap's market cap. Blue Duck proposed selling 20% of Specs for $1B, suggesting shares could reach $12-$14. Snap's management has not confirmed this plan. Analysts' price targets range from $7 to $10, with TIKR estimating a 58% total return by 2030. Snap faces cash flow pressures from Specs, AI infrastructure, and litigation costs.

Norway plans to ban under-16s from social media, targeting platforms like Roblox, Snapchat, and TikTok. The government aims to address risks such as harmful content and addictive features, with the bill to be presented by year-end. Tech companies will be responsible for age verification and removing harmful content.

Pinterest amended its revolving credit facility to $700M for 5 years, replacing a $500M facility. The new agreement, with JPMorgan, allows increases up to $1B, has a pricing rate of adjusted SOFR plus 1.25%, and a 0.10% commitment fee. It includes customary covenants and a max net leverage ratio of 3.5x. No amounts were outstanding as of October 15, 2026.