Reddit made its debut on the New York Stock Exchange last night with the ticker symbol RDDT, experiencing a 48% increase from its IPO price, closing at $50.44 per share. The company’s market value was around $9.5 billion. Throughout the day of trading, the stock surged by as much as 70%.
In 2023, Reddit’s financial performance saw a 20% revenue growth from 2022, reaching $804 million, but a net loss of $90.8 million, a decrease from the previous year. The main source of revenue this year came from selling licenses for data usage, amounting to $203 million over a 2-3 year period. Additionally, they announced an extended collaboration with Google for data access to further train AI technology.
Founded in 2005 by Alexis Ohanian and Steve Huffman, Reddit’s current CEO, the company is primarily owned by Advance Publications, a media conglomerate that acquired the business in the past. Other significant shareholders include Tencent and Sam Altman, the CEO of OpenAI.
TLDR: Reddit’s IPO on the NYSE saw a significant increase in share price, with strong growth in revenue and strategic partnerships in 2023, driving the company’s value and position in the market.
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