Investors eagerly embraced Reddit as its stock debuted on the New York Stock Exchange. The stock started trading above its initial price, reaching around $50 per share and giving Reddit a value of about $8 billion, traded under “RDDT.” While this is a drop from its 2021 value of $10 billion, it’s still better than many expected.
The IPO serves as a test for investor interest in tech companies amid challenges like inflation and economic uncertainty. It also gauges interest in social media amid the AI trend in tech. Reddit, known for past controversies, saw its owner Condé Nast make a hefty profit from the IPO. Behind them is Tencent, with OpenAI CEO Sam Altman being a major shareholder.
The inclusion of Reddit users as shareholders adds unpredictability. From its humble beginnings in a college dorm room, Reddit has grown into a massive platform with millions of daily users across various communities, known for its unique user-moderation system.
