Reddit’s strong IPO debut, following directly in the wake of Astera’s blockbuster public offering, could shake up the current market dynamics and narrative surrounding going public. In the wake of a compression in tech valuations since the implosion of the 2021-era asset bubble, few tech companies have tested public markets. In part this is due to private-public valuation mismatches, bdswiss review among other factors. With $804.0 million in 2023 revenue, and still unprofitable (with net losses of more than $90 million last year), Reddit may appear to be trading on the high end of its revenue multiple compared to the nearest comparable social media companies like Snap. But it has a significant AI story to tell that could excite investors about its future.

1. This is “a privilege normally reserved only for big investors,” The Wall Street Journal added.
2. Meta also generates annual revenue of $135 billion, while Reddit’s remains below $1 billion.
3. Any posts asking for a review or critique of their portfolio should be posted in the quarterly portfolio thread stickied at the top of r/StockMarket.
4. For instance, redditor Realistic_Weight_842 asked as to whether Reddit is worth being a publicly traded company.

Reddit Inc.’s stock is continuing its sharp ascent in Tuesday trading, even as an analyst took a sidelined stance on the social-media name. Trump Media (DJT) and Reddit (RDDT) were the biggest names to go public in the first quarter of the year. To a large extent, these companies performed well shortly after listing in New York, which cou… Reddit Inc. has a “compelling” near-term narrative ahead of it, according to a Bernstein analyst. The company was the leading social-media player in terms of user and revenue growth during the fourth …

Here’s why Trump Media (DJT), Rumble, Reddit stocks dived

The site is extremely popular for memes, gossip, advice, and discussing niche interests. However, Reddit also plays a key role in the spread of misinformation and disinformation. Any posts asking for a review or critique of their portfolio should be posted in the quarterly portfolio thread stickied at the top of r/StockMarket.

Banker sees healthy M&A, IPO deal pipeline as private-equity firms look to deploy cash

But there’s still a lot of work to be done if the IPO market is going to start flashing bright green lights to private companies looking to go public. The IPO market got an encouraging sign in September when ARM Holdings went public, creating some excitement as it leaned in to its exposure to artificial intelligence. Reddit and Astera Labs went public last month and have seen solid demand for their stock as both remain above tickmill review their initial IPO price. The IPO market is finally starting to show some signs of life following a two-year freeze of companies going public. If posting a link or image, we ask that you provide some commentary behind the link unless the title is self-explanatory and significant. Simply posting an image by itself or posting your positions, or P&L, without market or risk commentary will also be considered low-effort.

Short sellers target Reddit shares as stock slips

In the documents filed for its revived IPO, Reddit attributed the losses to a fairly recent focus on finding new ways to boost revenue. Most importantly, he added, the IPO will be a referendum on expectations of Reddit’s future profitability, which has yet to be demonstrated even as revenue has grown. Although his founder’s letter leading up to this IPO didn’t mention it, Huffman touched upon the company’s past turmoil in another activtrades forex broker review missive included in a December 2021 filing attempt that was subsequently canceled. The company also is hoping to bring in more money by licensing access to its content in deals similar to the $60 million that Google recently struck to help train its artificial intelligence models. In the recent documents filed for its revived IPO, Reddit attributed the losses to a fairly recent focus on finding new ways to boost revenue.

Additionally, see our quick guide on how to ask good questions and share quality content. Yet, this might prove risky for the company, some experts and redditors noted, and in turn, risky for investors. Since Thursday just marks Reddit’s first day on the public market, Aggarwal stresses that the first key measure of success will boil down to the company’s next earnings call.