Reddit IPO: A Quick Overview

  • 20 March 2024
  • Posted by: Federica Montella
  • Categories: eToro CopyTrader, Investing
No Comments

Today marks a significant milestone for Reddit as it goes public with its initial public offering (IPO).

Reddit aims to raise $748 million in collaboration with the company and select shareholders.

Let’s delve into what this means for the platform and investors:

What Is an IPO?

An IPO is when a private company offers its shares to the public for the first time. It allows investors to buy a stake in the company and participate in its growth.

Key Points:

  1. Valuation: In its most recent funding round, Reddit was valued at $10 billion. While this is substantial, it’s essential to consider how it compares to other tech giants.
  2. User Base: Reddit boasts over 50 million daily active users and more than 50 billion monthly page views. Its diverse communities cover a wide range of topics, making it a hub for discussions.
  3. Advertising Revenue: The platform’s growing engagement has translated into significant advertising revenue. In Q2 2021, Reddit generated over $100 million in revenue, a nearly 200% increase year-over-year.
  4. Popularity: Reddit’s popularity extends beyond the U.S., with 18% of Americans using the platform. Its engaged user base played a pivotal role during the meme stock boom in January 2021.

What Investors Should Consider:

  • Growth Prospects: Reddit’s engaged user base could propel it further, but sustained growth and profitability are crucial.
  • Challenges: While Reddit is popular, profitability remains a challenge. Unlike dominant platforms, it hasn’t established a dominant position yet.
  • Competitive Landscape: Can Reddit leverage its popularity to become a major player in the social media ecosystem?

You can start trading Reddit on eToro from tomorrow under the stock ticker symbol RDDT.

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Sign up to receive my latest articles in your inbox

I agree that my data is used according to the privacy policy



Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.

Partners: Osom One, Vincenzo Stefanini, Federica Montella, Crypto Breaking, Visit Tenerife, White Shop, Soccavo Magazine, Leggo Fuorigrotta, Night Awards, Capodanno Napoli, Come To Dubai