Reddit Stock Surges 48% in Long-Awaited NYSE Debut
Reddit officially goes public on the New York Stock Exchange under the ticker RDDT, seeing its stock jump nearly 50 percent on the first day of trading. The successful launch marks the first major social media IPO since Pinterest in 2019.
Reddit shares jump 48 percent in their public market debut on the New York Stock Exchange, ending a lengthy dry spell for major social media initial public offerings. The 19-year-old company prices its IPO at $34 per share, the top of its expected range, allowing Reddit and its selling shareholders to raise approximately $750 million.
The stock opens at $47 and climbs as high as $57.80 during Thursday's session before closing at $50.44. This closing price gives the online forum giant a market capitalization of roughly $9.5 billion, a significant recovery from its $6.5 billion valuation at the IPO price.
This successful launch tests investor appetite for new tech offerings after a challenging period for venture-backed startups. While Reddit operates at a net loss, its annual revenue grows 20 percent to $804 million in 2023, and its market debut follows a similarly strong first-day performance from data center hardware company Astera Labs.