Reddit is going public and inviting power users to invest
VergeFeb 23
Reddit Files Initial Public Offering
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The Facts
Online forum platform Reddit filed an initial public offering (IPO) prospectus with the Securities and Exchange Commission (SEC) on Thursday, paving the way to become a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol "RDDT."
Expected to hit the market next month, Reddit has been looking to go public for years. Its listing will be the first major tech IPO of 2024 and the first social media IPO since Pinterest in 2019.
The Spin
Narrative A
Not only is Reddit’s long-awaited IPO a huge boon for company executives and institutional investors, but it is also a win for ordinary Reddit users who will have the unique ability to buy shares in the initial offering. Reddit is a platform made up of communities, and the company is showing how much it values its community at large. Powered by its millions of users and high-profile investors, there's little doubt that Reddit's public debut will be a success.
Narrative B
While Reddit may be doing a nice thing for its loyal users by offering them the opportunity to buy shares in its IPO, the goodwill offer makes the company’s entire deal riskier. IPO investors typically have extensive experience and knowledge, and allowing novices to get in the game could make things worse for them as well as the company. A social media company that records net losses is already volatile, and allowing users to invest in the IPO makes Reddit an even riskier bet.
Nerd narrative
There is a 56% chance that a S&P500 tech boom will surpass the dotcom bubble for one quarter or more before 2025, according to the Metaculus prediction community.