Social media platform Reddit soared by 48% on its first day of trading on the New York Stock Exchange, closing at $50.44 per share. With an initial public offering (IPO) value of $6.4 billion, Reddit has become one of the most successful social media firms to go public. Interestingly, Reddit offered some shares to its users in addition to traditional investors, marking a unique and inclusive approach to its IPO.
Founded nearly 20 years ago, Reddit has grown into one of the most popular websites globally, boasting over 73 million users as of December 2023. Despite its immense user base, Reddit has struggled to turn a profit over the years due to its free-to-use model. However, recent partnerships with AI firms like OpenAI have unlocked potential revenue streams through selling data from user conversations. While Reddit faces regulatory inquiries and patent challenges, its user base remains a crucial factor in its financial success and market value.