Reddit, the well-known social platform whose plans to go public have been known for some time, sets a goal of $748 million after the IPO that officially marks Reddit’s leap into the shareholder market. This figure reflects the high expectations of the company with its IPO, but the company is fully convinced of the success of the operation.
Reddit and its IPO
As Bloomberg has reported, Reddit plans to raise up to $748 million with its IPO, and they are fully convinced of it. The well-known platform that brings together millions of users daily on the internet is confident that the long-planned IPO will be a success and that the generated expectations will be easily met.
The IPO is usually one of the riskiest steps that many companies take when making profound changes in their business model. In fact, many companies were severely punished by a stock market that was not as interested as expected at first. That was the case of Twitter, a social network that, despite its immense success, was in losses, and that, after Elon Musk’s purchase, its value has plummeted substantially.
Exciting times for Reddit
But in the case of Reddit, the expectations are different. With an estimated value of around 6.5 billion dollars (one-tenth of what Twitter was worth in 2022) and a share price between 32 and 34 dollars, the company believes that the IPO will be a success and that this 2024 will undoubtedly be one of the best years in its history.
It doesn’t happen the same, however, with decisions related to community management, since, especially in the last two years, there have been numerous changes that have generated a high controversy among the most frequent users of Reddit. In fact, the application has been the subject of boycotts by its community, despite the fact that, economically, the service is going through one of its sweetest moments. Therefore, it remains to be seen if Reddit manages to win back the favor of its user base.
