Reddit soars after NYSE debut: Here are top things to know
social media company Reddit was up nearly 50% on the New York Stock Exchange Thursday in a stellar market debut that has given hope to the companies gearing up to go public.
Shares of the San Francisco-based company debuted at $47 on the New York Stock Exchange on Thursday, up from the IPO pricing of $34, the top of the company's indicated price range. The stock closed at $50.44.
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Offering CollegeCourseWebsiteMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitHere are key things to know about Reddit:
Valuation: Thursday's opening debut has valued Reddit at $9 billion, with the company and its selling shareholders raising $748 million. This is below the company's $10 billion valuation after its 2021 funding round.
Profitability: The 19-year-old company has just over $800 million in annual revenue, making it extremely small by the tech industry’s standards. Its $9 billion remains far below the $1.2 trillion market value boasted by Meta Platforms — whose biggest social media service Facebook was started just 18 months earlier than Reddit.
The company posted combined losses of $436 million from 2020 through 2023.
The majority of the company's revenue comes from ads as its communities of users post and discuss everything from history to stocks and AI, making it a valuable platform for some advertisers.
Leadership changes: Reddit has gone
