Reddit, a top social media platform that hosts thousands of different forums, has successfully listed its shares on the New York Stock Exchange (NYSE). Shares in Reddit are experiencing a solid pop after being priced at $34 a share. As of this moment, Reddit is trading at over $50 a share.
Reddit reports an active community of more than 100,ooo, and over 73 million unique daily users. The tally of posts on the forum surpass one billion.
Reddit came to life in late 2005, in a letter from Reddit co-founder Steve Huffman he explained that the communities of Reddit have scaled to a degree he never imagined possible. Huffman explained:
“One of the founding principles of Reddit was that it be a real place cultivated by real people instead of a fake place manicured by editors and other gatekeepers. Reddit is not a social media platform optimized for self-display; it is a community that rewards candor and honest advice. This is why millions of people trust Reddit for everything from relationship guidance to in-depth product recommendations. We have confidence in the magic of human-curated organization, creativity, and generosity. Reddit enables these human virtues, which means we can mostly stay out of the way.”
The IPO market has been tepid at best in recent years. In past decades, the number of public firms has declined due to the cost and ongoing compliance mandated to become a reporting company. A successful IPO by a big tech firm is bullish for public markets as well as investors.
Reddit emerged as a more popular community in the financial services world after WallStreetBets (r/wallstreetbets) became a meetup for smaller investors to act in unison to take advantage of market peculiarities. The arbitrage created by the forum was covered globally by the media.
While a day in trading is not indicative of future growth, some pundits believe that by becoming a public firm Reddit will focus more on profitability as the service matures.