On Thursday, the social media platform Reddit made its highly anticipated debut on the New York Stock Exchange under the ticker RDDT. The forum, notorious for influencing the stock market in 2021 with the GameStop saga, welcomed its IPO with irreverent memes and messages. Despite some negative comments from users on r/wallstreetbets, CEO Steve Huffman acknowledged the feedback, stating that they “tell it like it is” on Reddit. Shares opened at $34, surged to over $56, and closed at $50.44, valuing the company at approximately $8.5 billion. Reddit’s successful IPO was seen as a positive sign for other tech companies looking to go public.
However, Reddit still faces challenges ahead as it struggles to turn a profit. The company initially filed to go public in 2021 but postponed the plan due to concerns about the IPO market and investor appetite. With a revenue of $804 million in 2023, Reddit lags behind other social networks like Meta and Pinterest. Nevertheless, Reddit sees potential in the generative AI boom and recently announced a licensing deal with Google to use Reddit data for training their models. Founded in 2005, Reddit has weathered various controversies over the years while maintaining steady growth in user traffic, making it a resilient platform in the competitive social media landscape.
Redditors, the platform’s dedicated users, were rewarded during the IPO process with early access to buying shares, a privilege typically reserved for bankers or VIPs. Prominent redditors were offered a chance to purchase up to 1,000 shares at a discounted price. While some users expressed caution about the stock’s risk, others eagerly participated in the opportunity. The platform’s user base has been crucial to its success, with redditors playing a significant role in driving discussions on topics ranging from stock trading to social issues.
Reddit’s impact on the financial world was exemplified by the GameStop short squeeze orchestrated by users on r/wallstreetbets in 2021, which made national headlines. The company’s IPO generated significant buzz among redditors, with discussions about the CEO’s salary and comparisons to other tech leaders gaining attention on the platform. Despite the controversies and challenges faced by Reddit over the years, users expressed excitement and pride as the company went public, symbolizing the power of community on the platform. Overall, Reddit’s IPO was hailed as a milestone moment by its loyal user base, signaling a new chapter for the platform as a publicly traded company.
