Reddit Stock Surges 38% in Long-Awaited New York Stock Exchange Debut
Reddit begins trading on the NYSE at $47 a share, marking a significant 38% jump from its initial public offering price. The highly anticipated debut values the nearly 19-year-old social media company at approximately $10 billion despite its history of unprofitability.
Reddit stock begins trading on the New York Stock Exchange at $47 a share, jumping 38 percent above its initial public offering price of $34. The strong opening values the social media company at around $10 billion as investors show heavy enthusiasm for the platform. Trading under the ticker symbol RDDT, the shares notch just above $55 during the day.
The initial public offering serves as a major test of investor appetite for new tech companies in a challenging economic environment marked by stubborn inflation and high interest rates. It also acts as a gauge of Wall Street's interest in social media at a time when artificial intelligence dominates the technology industry. Reddit faces high expectations to expand its business despite never turning a profit.
The public debut brings a lucrative payday for Condé Nast's parent company, which controls about a third of Reddit's shares and reaps over $2 billion from the launch. This milestone concludes a bumpy nearly 19-year journey for the network of anonymous message boards, which previously battles leadership crises and controversies over toxic content before recently cleaning up its platform.