Reddit went live on Thursday after much anticipation and speculation. The IPO price was set at $34 per share by approximately 2:15 p.m. ET. trade was booming $50 per share. This represents an increase of nearly 50%.
It's clear that Reddit is an important website in the online world's ecosystem. But it was never a particularly profitable endeavor. In fact, during its 18 years of existence, I never have I made a profit.
That fact, combined with a general distaste for Reddit's monetization drive, gave it leverage in the stock market. Subreddit r/WallStreetBets Bets against Reddit.this is Bloated subreddit So bad for the hedge funds that were betting on these companies against GameStop and other stocks.but r/wallstreetbets was a dead end shorting Reddit stock.Many users believe that the value is too high.
Tweet may have been deleted
To be fair, the $34 stock price values Reddit at $6.4 billion, which is…a lot of money. However, before the stock actually hits the market, There were signs It could start trading at around $50 per share. This was the case once the stock started trading in earnest.
Reddit was considered an important IPO in the financial world, if not a meta juggernaut. Reuters reported.
„If Reddit trading is bad, it will cast a shadow on the IPO market. Many companies will pause their IPO efforts,“ said CEO of investment firm Accelerate Financial Technologies. , Julian Klimochko told the news agency.
Still, there is a word for IPO initial There's a reason for that. This is just his first day with Reddit as a public company, and there's a lot more to come.
This story is developing and will be updated…