Reddit's big first day, big CEO pay, and what comes next: Reddit IPO roundup
Plus, 5 subreddits to follow, and how Reddit's IPO compares to other social media companies that went public
Reddit $RDDT went public this week in a successful IPO that could encourage other so-called “classic” tech companies to go public. The company priced its IPO at the top of its range, only to have that share price pop almost 50% during the first day of trading.
Reddit still isn’t profitable, and its capital goal was small relative to other social media giants, but the site is helping wake up a sluggish IPO market from its two-year lull.
Check out those and more highlights from Reddit’s big IPO week.
Reddit $RDDT’s first day of trading was a soft ringtone tickling the ear of a sleepy IPO market. After a sluggish 2022 and 2023, Reddit’s early success as a public company could encourage other “classic” tech companies to go public.
Reddit $RDDT stock soared by as much as 70% as the company kicked off its highly anticipated initial public offering, before closing up about 48% on its first day of trading. The shares at one point rose to a high of $57.80, well above the company’s IPO price of $34 set the day before. They closed at $50.44, still up 48.3% on the day.
Reddit $RDDT priced its initial public offering at $34 per share, valuing the company at $6.4 billion. The outcome was in line with expectations.
Curious people have long gone to Reddit $RDDT for knitting tips, tech news, bookbinding tips, and of course, investing advice. There’s more to Reddit than r/WallStreetBets when it comes to stock tips.
Reddit $RDDT co-founder and CEO Steve Huffman has been blasted by Redditors and in media reports over his recently-revealed, super-sized pay package of $193 million in 2023.
Reddit $RDDT and its shareholders raised $748 million from the IPO, valuing the company at $6.4 billion. That valuation surged closer to $10 billion on Reddit’s first day of trading as shares surged on the New York Stock Exchange.
That’s still meager compared to the capital raised by other social media platforms in their initial public offerings.