🔎 Insight Reddit

The Story Behind Reddit‘s Unpopular IPO

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INSIGHT

Insight Reddit: The Story Behind Its Unpopular IPO.

Provided by Reddit

On Thursday, U.S. time, Reddit—often referred to as the "front page of the internet"—successfully launched on the New York Stock Exchange with the ticker "RDDT". This event marks Reddit as the first significant social media platform to go public since Pinterest did in 2019.

The company's IPO launch significantly boosted its worth to nearly $9 billion. Initially valued at $34 per share, Reddit's stock price surged, reaching over 40% by mid-afternoon.

Reddit's move to go public, despite frequent problems and continued losses, signals their commitment to building a lasting business. The success of their recent IPO is a milestone, particularly after last year's failed attempt and their history of not making a profit. Yet, insiders disclosed that Reddit had turned a profit in the fourth quarter, though specific figures were not made public, and its launch on the New York Stock Exchange reflects the trust investors have in its future success.

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