Reddit to go public in first social media IPO since 2019, offers power users first dibs in stock [RDDT]

[Trendingger]

 

Reddit, the popular internet discussion platform, has recently filed for its long-awaited initial public offering (IPO). The company plans to list its Class A common stock on the New York Stock Exchange under the ticker symbol "RDDT". This move has sparked a buzz in the online community, making ‘Reddit IPO’ a trending topic.

 

In 2023, Reddit reported a revenue of $804.0 million, up 21% year over year, and a net loss of $90.8 million. Despite these losses, Reddit’s user base continues to grow, with more than 500 million visitors and an average of 73.1 million daily active unique users worldwide in December 2023.

 

Interestingly, Reddit is offering its users who have “meaningfully contributed to Reddit community programs” the chance to buy shares in the company at the IPO price. This move is unusual as it’s a privilege normally reserved for employees or investors.

 

The Reddit IPO is expected to be the largest by a social media company since Pinterest went public in 2019. The number of shares to be offered and the price range for the proposed offering have not yet been determined.

 

As Reddit prepares to go public, it has issued a warning to investors about the potential for Redditors to influence the stock prices, similar to the GameStop mania. This adds an element of unpredictability to the Reddit IPO, further fueling the online discussions.

 

What are your thoughts on Reddit’s decision to go public? How do you think the opportunity for Redditors to buy shares at the IPO price will impact the stock’s performance?

 

 

Read more:

• https://www.nytimes.com/2024/02/22/technology/reddit-initial-public-offering.html
• https://www.theguardian.com/technology/2024/feb/22/reddit-ipo-stock-market
• https://arstechnica.com/gadgets/2023/11/reddit-updates-look-after-rough-6-months-and-ahead-of-reported-ipo/
• https://www.npr.org/2024/02/22/1233245941/meet-rddt-popular-social-platform-reddit-to-sell-stock-in-an-unusual-ipo

 

 

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