RDDT: Reddit Stock Pops 38% Out of the Gate to Trade at $47 a Share at $9 Billion Valuation

Social media platform blasted off after an oversubscribed IPO fueled hopes of a tech comeback in the public-market space.

Key Points:

• Reddit stock pops 38% in first deals.
• Never seen a profitable year.
• Ads looking like user posts?
• Reddit stock RDDT skyrocketed 38% on the New York Stock Exchange, making its debut deals at $47 a share. The opening price eclipsed the company’s own target of $34 a pop and overshot the $6.4 billion valuation, landing at just under $9 billion. In the first few minutes, heavy buying boosted share prices to $55 a piece.
• The social media platform, home to thousands of chat rooms, including the infamous WallStreetBets, raised $748 million in its oversubscribed IPO and floated 22 million shares. Despite the lofty valuation, Reddit has never seen what a profitable year looks like. And it’s been around for 18 years.
• In 2023, Reddit picked up revenue of $804 million but realized an annual loss of $91 million. Along the way, volunteer moderators handled all the content for free. Looking ahead, Reddit has said it plans to move into the black—earn a profit—by making ads look like user posts.