(BFM Bourse) – The forum platform jumped almost 50% for its first steps on Wall Street. This is the biggest operation in the social media sector since Pinterest in 2019.
This is an IPO with fanfare, reminiscent of the 2010s, when Twitter arrived with a bang on Wall Street.
Reddit explodes the counters for its first steps on the stock market. The social network saw its action jump 50.8% to $50.31, well above its introductory price of $34, which was already the top of the range chosen by the company.
At the current price, the American company has a market capitalization of $8.16 billion. Reddit’s IPO is the first for a social network since 2019 and Pinterest. Facebook (renamed Meta) took the plunge in 2012, Twitter in 2013, and Snap Inc, parent company of Snapchat in 2017.
>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio
Shareholder Redditors
Founded in 2005, the Reddit platform claims 73 million unique users per day and 267 million per week. In 2023, its revenues were $804 million for a net loss of $90.8 million. However, it was halved compared to 2022.
Fun point: Among the many risk factors the company lists in its prospectus, the company refers to its users and contributors called “Redditors.”
“If Redditors do not continue to contribute content or if their contributions are not useful or engaging to other Redditors, we may experience a decline in the number of Redditors accessing our products and services and in user engagement, which which could result in the loss of advertisers and harm our reputation, business, results of operations, financial condition and prospects,” the company said.
The company has also reserved 1.76 million shares or 8% of the shares issued as part of this introduction to directors, friends of employees but also to moderators and eligible users of its platform.
Julien Marion – ©2024 BFM Bourse