Published , by Asif Khan
Published , by Asif Khan
Reddit, the online forum juggernaut, has reportedly priced its IPO at $34/share. This would value the company over $6 billion and is on the high side of the expected IPO pricing range.
Reddit will trade under the symbol RDDT when it lists on the stock market. The expected IPO prices for the company are lower than the last round of funding in 2021 which had Reddit valued at $10 billion. The company generated revenues of $804 million in 2023, with a full year net loss of $90 million. That was an improvement from the 2022 full year loss of $158 million, but it does call the IPO valuation into question. Potential investors should consider that Reddit is seeing revenue growth up 20% in 2023, and the company is already working to cut costs ahead of going public.
Reddit's S1 filing with the SEC discloses that the company had 73.1 million Daily Active Users in December 2023, which really highlights just how much smaller the platform is when compared to social media giant Facebook and even Twitter (currently known as X).
the man with the briefcase on Cortex
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