If there’s one company we’ve been hearing a lot about this year, it’s Reddit. Doesn’t it feel like this social media giant should already be public?? Well, the platform has reportedly begun taking the steps to do so.
Reddit announced on Wednesday that it filed a confidential S-1 with the Securities and Exchange Commission. The number of shares and pricing has not been determined, but there are a few clues hinting at what we can expect from this blockbuster IPO. 👏 👏
The company raised a $700 million round at a $10 billion valuation back in August. Reddit also commented that its ad revenue surpassed $100 million in Q2 2021, which was up 200% YoY. That makes lots of sense, given the rise of Reddit communities like r/WallStreetBets to prominence. In August, the company also had over 52 million DAUs.
These factors imply that Reddit will probably be a beefy IPO, offering investors access to a huge social media growth opportunity. Better yet, investment communities on Reddit have already begun to discuss turning it into the next momentum trade. 🚀 Early estimations have pinned Reddit’s IPO as a spicy decacorn event. 🦄 🦄
You can follow the conversation about Reddit in the Stocktwits community! 🥳 The ticker is $REDDIT.P.