San Francisco-based social media platform Reddit made a hotly anticipated debut on the New York Stock Exchange, with shares closing at $50.44, nearly 50 percent higher than the initial offering price of $34. This gave the company a value close to $9 billion, making it one of the biggest tech IPOs in recent times. The strong market debut comes after Reddit delayed its IPO in 2021 due to market conditions.
Despite having over 70 million daily users, Reddit has yet to turn a profit and has incurred losses totaling $717 million. However, CEO Steve Huffman remains optimistic about the company’s future, stating that the advertising business is gaining momentum and there is no limit to its potential growth. Reddit’s unique platform, focusing on a wide range of topics and interests, has attracted a loyal user base.
Notable investors in Reddit include OpenAI CEO Sam Altman, who owns 12.2 million shares. The success of Reddit’s IPO will be a test of the company’s ability to establish a viable business model after years of losses and management changes. With its market debut, Reddit joins the ranks of social media giants like Meta, the owner of Facebook and Instagram, which is valued at $1.2 trillion. Overall, Reddit’s strong market debut signals a bright future for the company as it continues to expand its reach and relevance in the online world.
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