03/20/2024 – 19:43
Reddit, a popular news aggregator social media site, has priced its initial public offering at $34 per share. At that price, Reddit would be valued at $6.4 billion, according to the company.
Reddit is raising $519.4 million by selling nearly 15.3 million shares. Other Reddit investors are selling an additional 6.7 million shares through the IPO. The shares are expected to begin trading Thursday on the New York Stock Exchange under the ticker RDDT.
Reddit's IPO comes a day after another unicorn, artificial intelligence infrastructure provider Astera Labs, debuted with a 72% gain in its shares.
Even so, the IPO is viewed with caution by investors. The company is still losing money, and its revenue growth has slowed in 2023. Reddit also generates almost all of its sales from advertising, which is a market considered fickle and cyclical. Concerns about the regulation of artificial intelligence in the US could also be an issue.
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