Reddit IPO: Reddit soars after NYSE debut: Here are top things to know
The share price of 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.
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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.
Here 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.
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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 through instability in leadership. Cofounders Steve Huffman and Alexis Ohanian exited the company in 2009, only to return in 2015 after Ellen Pao resigned as chief executive amid a user backlash over a ban imposed on several communities and the sacking of Reddit’s talent director. Huffman, 40, is now CEO.
Early investors: Reddit’s large reach attracted some prominent supporters, including OpenAI CEO Sam Altman, who owns 12.2 million shares, making him one of the company’s biggest shareholders.
Other early investors in Reddit included PayPal cofounder Peter Thiel, actor Jared Leto and rapper Snoop Dogg.
AI push: Reddit recently struck a deal with Alphabet’s Google unit to license its data for training large language models — the technology behind generative AI applications like Gemini. The contract is worth about $60 million per year, as per reports.
Previous IPO attempts: Reddit had earlier filed confidentially for an IPO in December 2021, but backed out due to a stock rout sparked by Russia’s war in Ukraine and the Federal Reserve’s hiking of interest rates.
(With agency inputs)
The share price of 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.
Here 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.
Discover the stories of your interest
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 through instability in leadership. Cofounders Steve Huffman and Alexis Ohanian exited the company in 2009, only to return in 2015 after Ellen Pao resigned as chief executive amid a user backlash over a ban imposed on several communities and the sacking of Reddit’s talent director. Huffman, 40, is now CEO.
Early investors: Reddit’s large reach attracted some prominent supporters, including OpenAI CEO Sam Altman, who owns 12.2 million shares, making him one of the company’s biggest shareholders.
Other early investors in Reddit included PayPal cofounder Peter Thiel, actor Jared Leto and rapper Snoop Dogg.
AI push: Reddit recently struck a deal with Alphabet’s Google unit to license its data for training large language models — the technology behind generative AI applications like Gemini. The contract is worth about $60 million per year, as per reports.
Previous IPO attempts: Reddit had earlier filed confidentially for an IPO in December 2021, but backed out due to a stock rout sparked by Russia’s war in Ukraine and the Federal Reserve’s hiking of interest rates.
(With agency inputs)
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