Reddit Hits the Stock Market Running with a 70% Surge on Day One

Reddit really shook things up when it hit the New York Stock Exchange. Right out of the gate, its share price jumped a whopping 70% up to $57.80, way up from its starting IPO price of $34 per share.

by Faruk Imamovic
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Reddit Hits the Stock Market Running with a 70% Surge on Day One
© Getty Images/Mario Tama

Reddit really shook things up when it hit the New York Stock Exchange. Right out of the gate, its share price jumped a whopping 70% up to $57.80, way up from its starting IPO price of $34 per share. This put the company's value at a cool $6.4 billion, nearly hitting the top of what they hoped for.

Now trading with the ticker "RDDT," Reddit's big debut has got everyone talking, especially about what this means for online ads and sites that run on user content.

Reddit's Money Matters

The road to the stock market was a wild ride for Reddit.

Their latest financial report showed they made $804 million in 2023, 20% more than the year before, mostly from ads. But, they're still in the red, with losses of $90.8 million. With over 73 million folks using Reddit daily last quarter, it's clear the platform has a lot of folks hooked, which could mean big things for its future.

When Reddit first thought about going public in 2021, things looked tough. The market for IPOs had pretty much frozen over because of interest rate hikes by the Federal Reserve and a tough stock market that dragged on through 2022.

But now, with Reddit making its move, it looks like there might be a thaw, especially for tech companies wanting to go public, just like in the good old days.

For the Reddit Community

Reddit did something pretty cool for its big stock market debut: it saved 8% of its shares just for its regular users and the folks who help run its many forums.

This move, kind of like what Robinhood and Airbnb did, was meant to let its community get in on the action from the start. But not everyone on Reddit was thrilled, showing just how varied folks' opinions are on the site. Reddit hitting the stock market isn't just about the money; it's a big moment that shows how tech companies and their users are getting closer. As Reddit steps into the public eye, how it grows while keeping its community happy will be something to watch.

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