Reddit IPO's Wall Street debut: Social media stock makes roaring start, closing up nearly 50% - Hindustan Times
close_game
close_game

Reddit IPO's Wall Street debut: Social media stock makes roaring start, closing up nearly 50%

Mar 22, 2024 07:45 AM IST

Reddit IPO: Shares of the San Francisco-based company opened at $47 on the New York Stock Exchange.

Social media platform Reddit's shares ended their first day of trading up 48%. The company touted AI in its IPO marketing roadshow as an area of growth and said last week that the US Federal Trade Commission is looking into its AI data licensing deals. Jen Wong, Chief Operations Officer at Reddit, said as per news agency Reuters, “At the core we are a growth company. Achieving our mission means that we want to grow users and community.”

Reddit IPO: Reddit logo is seen in this illustration. The IPO of the company is valued at $6.4 billion, and the company and its selling shareholders raised $748 million. (Reuters)
Reddit IPO: Reddit logo is seen in this illustration. The IPO of the company is valued at $6.4 billion, and the company and its selling shareholders raised $748 million. (Reuters)

Read more: WhatsApp honey trap scam: What is it? How does it work and how to stay safe?

How Reddit shares performed on Day 1?

Shares of the San Francisco-based company opened at $47 on the New York Stock Exchange after pricing at $34 in the IPO, the top of the company's indicated price range. The shares ended trading at $50.44.

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

Reddit IPO details

The IPO of the company is valued at $6.4 billion, and the company and its selling shareholders raised $748 million. The company was valued at $10 billion in a private fundraising round in 2021 and its entry into public markets has been a long time coming. Reddit had earlier confidentially filed for an IPO in December 2021 but a stock rout froze much of the IPO market and pushed it to delay.

Read more: Bill Gates ‘jealous’ of this quality that Steve Jobs had: 'I'll never…'

What experts said on Reddit IPO

Josh White, assistant professor of finance at Vanderbilt University, said Reddit's IPO showed investors were willing to ignore the company's losses.

"We don't get many large tech IPOs. Those tend to be very popular because it's hard to buy that kind of growth," Josh White told Reuters.

Read more: Reddit plans $748 million IPO, one of the biggest so far this year: Details

Reena Aggarwal, director of the Georgetown University Psaros Center for Financial Markets and Policy, said, “The real news is going to be after the first earnings call - where are they headed, what are the results looking like, what changes are they going to make.”

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

See more

Get latest updates on Petrol Price along with Gold Rate , Today Weather and Budget 2024 at Hindustan Times.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, June 12, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On