Occurrences
Divisions
Performances
Occurrences
Divisions
Performances
Reddit Initial Public Offering: Stock prices surge 48% during initial trading, giving the company a $9 billion valuation
Reddit's entrance to the New York Stock Exchange via an Initial Public Offering resulted in the company being valued at over $9 billion. On its first day of trading, the social media platform's shares rose by 48%, moving from $34 to $50.44 per share.
Reddit's stocks skyrocketed by 48% during its inaugural trading day on the New York Stock Exchange, ending at $50.44. This increase followed Reddit's decision to value its shares at $34 apiece, which was close to the highest point in the market range, pushing the company's worth to more than $9 billion.
The initial public offering, among the biggest from a social media platform, put up 22 million shares. Interestingly, some of these were offered to Reddit users, but the company hasn't revealed how many were actually taken up.
Established almost 20 years ago, Reddit has grown to be one of the most frequented websites worldwide, with a user base of more than 73 million as of December 2023. Nevertheless, the company's move to go public has sparked renewed debates about its capacity to generate profit from its platform, which is mainly driven by user-created content and conversations, and doesn't charge subscription fees.
Even though Reddit has tried to draw in advertisers by improving its visuals in 2017, the platform has had difficulty making money in its initial twenty years. However, a possible solution looks to be in sight, focused on utilizing artificial intelligence (AI) models. Firms like OpenAI are open to paying for access to Reddit's extensive dataset to boost their AI proficiency, with Google allegedly paying $60 million for this type of access. Reddit has also arranged licensing agreements amounting to over $200 million in the coming years.
The possibility of making a profit comes with the risk of regulatory oversight and legal issues. The US Federal Trade Commission (FTC) is looking into how Reddit licenses its data, and mobile phone powerhouse Nokia has claimed that the platform has violated its patents. Further, Reddit's report to the Securities and Exchange Commission (SEC) mentions the potential danger posed by its user base, emphasizing its reliance on content created and engagement by its users for its business strategy.
Even though Reddit has faced some user criticism for changes to its platform, including an outage in 2023, it continues to be a significant player in the social media world. Although some users remain unhappy, the lack of a major rival provides Reddit with a degree of stability, anchoring its market worth to its user community.
(Incorporating information from various sources)
Look for us on YouTube
Top Programmes
Associated Articles
Reddit is targeting a huge $6.4 billion valuation and aims to raise a minimum of $500 million
A study finds that social media algorithms are promoting and normalising intensely misogynistic content among the youth
Mark Zuckerberg expresses his regret to parents at a Senate hearing for putting children at risk
Reddit is preparing for its IPO, likely to happen by March, and is hoping for a $10bn valuation
Reddit is targeting a huge $6.4 billion valuation and aims to raise a minimum of $500 million
A study finds that social media algorithms are promoting and normalising intensely misogynistic content among the youth
Mark Zuckerberg expresses his regret to parents at a Senate hearing for putting children at risk
Reddit is preparing for its IPO, likely to happen by March, and is hoping for a $10bn valuation
Can be found on YouTube
Firstpost holds all rights and is protected by copyright, effective until 202
+ There are no comments
Add yours