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Last month, Reddit awarded 75,000 super users their first batch of shares before the company It goes public Later this year.
Although Reddit may be so Fierce Considering the move a “private program,” popular reviews within the Reddit community show that reception has been mixed.
“I’ve been asked to join the IPO, and I’m not taking that risk,” one Reddit user said to publish. “The user base is not worth investing in.” Another was presented by A Contradictory opinionnoting that the Reddit community relies on Reddit scores for high-quality answers while also questioning the quality of this content.
RELATED: Reddit co-founder Alexis Ohanian says ‘surfer mentality’ is the ‘right’ approach to work and life.
However, others viewed Reddit as a “meme stock,” a term that ironically originated on the platform.
The 15 million members of the r/WallStreetBets subreddit have influenced the stock market before by manipulating underperforming stocks or “meme stocks,” with… GameStop Being an example of cost institutions Billions of dollars In losses.
Reddit just sent a direct message to my Reddit account asking me to buy shares in their IPO
Memes have arrived from the meme stock pic.twitter.com/lXdM6Xl210
-Jeremiah Johnson? (@JeremiahDJohns) February 22, 2024
However, some investors consider Reddit a good bet.
“I want to invest in a search engine anyway, because I think it’s a good investment,” said Gillian Tahajian, a 24-year-old marketing analyst. TechCrunch. “Google is overpriced, and Pinterest is letting me down.”
The deadline to pre-register for Reddit stock arrives this week for the 75,000 users Reddit has chosen to invite. According to Reddit File S-1 With the Securities and Exchange Commission, which the company filed to prepare for its initial public offering, Redditors who Contributed To a large extent the community receives preference for pre-registration. Reddit takes into account a user’s “karma score,” which measures how much their actions contribute to the Reddit community, and a moderator’s actions to determine their choices.
Related: Spirit Airlines is the Latest Meme Stock Amid a 131% Uptick
Reddit, which He calls himself “The Front Page of the Internet” was founded by Alexis Ohanian, Aaron SwartzAnd Steve Hoffman in 2005. The platform grants the power to post and moderate the community to users, who are instrumental enough in the success of the platform that they have been able to render the website ineffective last year To respond to Administrative changes.
Reddit could be seeking a $6.5 billion valuation, according to A Source CNBC.
Data from Semrush’s traffic analytics tool reveal Reddit was the third most visited website in the United States in December 2023, beating Facebook by about 535 million views. Twitter, Instagram, and TikTok ranked 10th, 13th, and 17th, respectively. Globally, Reddit Takes 9th place according to Semrush, putting its traffic numbers higher than TikTok and WhatsApp, but lower than Facebook, Twitter and Instagram.
Related: Netflix Documentary ‘Eat the Rich: The GameStop Saga’ Explains the Meme Stock Saga That Cost Wall Street $20 Billion
Reddit’s SEC filing reveals that the company has 267.5 million weekly active users, more than 100,000 active communities, and a total number of posts of 1 billion. The company wasn’t profitable last year, with a net loss of $90.8 million, but it plans to become profitable through “advertising, monetization of commerce on the platform, and licensing data,” according to the filing.
The filing also shows that Reddit currently generates 98% of its revenue through advertising.
Hit reddit a A deal worth $60 million With Google in February that allows the company to train its AI models on Reddit posts.
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