![]() ![]() But this also isn’t a guaranteed slam dunk. A successful Reddit IPO could provide a much-wanted, much-needed, much-yearned for reopening to the public markets. The exit market is so stilted, and if it rips, Reddit could be a private markets hero for reopening the IPO market at a tough time. But the one thing I do know is this-people love an IPO, and many people (myself included) love Reddit as consumers. A Bloomberg report last month said the company was hoping for a valuation of at least $5 billion, which would be quite a step down from the $10 billion valuation Reddit reportedly garnered in 2021 fundraising. It’s not clear how much money Reddit is hoping to raise in its flotation, nor at what price it hopes to sell shares. According to private markets platform Forge, there hasn’t been a spike in activity surrounding IPO chatter for Reddit (which one might typically expect) and year-to-date the company’s private market share price has remained flat. I checked up on WallStreetBets as I was writing this, and the primary post that caught my eye read “Reddit lists WSB as a risk factor for its IPO” with a smirking emoji.Īnd add to that: Over in the secondary markets, the appetite for Reddit shares is not exactly ravenous. My guess is that in the public markets, Reddit will be pressured to get its user numbers up, stat.Īnother curious twist: In a way that’s not actively true of other social media platforms, Redditors themselves have played a role in the public markets before-the now-famous r/WallStreetBets subreddit was central to GameStop and meme-stock mania in 2021. Even Snap, a social media minnow compared to Meta, boasted 414 million daily active users in Q4 2023. That leaves out Meta’s so-called “Family of Apps” which includes Instagram and WhatsApp. Per Meta’s latest earnings, Facebook’s daily active users were, on average, 2.11 billion in December. Those user numbers sound big, but so you understand what Reddit is up against when it comes to social network scale, consider Facebook (yes, specifically the platform). Reddit additionally reported 73.1 million daily active users in the three months leading up to the end of the year-and that number gets bigger once you get to weekly active users, 267.5 million. While the company’s revenue growth was up 21%, the company also clocked $90.8 million in losses last year. Reddit’s 2023 was mixed, the filing shows. To me, they’re illustrative of a company with a complex past, present, and (in all likelihood) future. But the numbers under Reddit’s hood, while interesting, aren’t exactly what I’d call exciting.
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