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How do social media companies make money?
Social apps are free because advertisers pay to show ads to the people scrolling. Together, Meta, Snapchat, Pinterest and Reddit took in $213 billion in their latest years and kept $60.9 billion in profit, $28.57 of every $100.
From each company's latest Form 10-K. Page updated November 8, 2026.
Social apps are free because advertisers pay to show ads to the people scrolling. The more time people spend and the better the targeting, the more each ad is worth.
Where each company's money comes from.
Sources: Meta Form 10-K, Snapchat Form 10-K, Pinterest Form 10-K, Reddit Form 10-K on SEC EDGAR.