Reddit's $6.4B IPO Valuation Debate: $3B For 850M Users 'Is Too Cheap,' Argues Redditor
Portfolio Pulse from Surbhi Jain
Reddit, Inc. (NYSE:RDDT) plans to go public with an IPO aiming to raise $748 million at a valuation of $6.4 billion, offering shares priced between $31 and $34. The Reddit community is divided on the IPO's valuation, with discussions on financial health, profitability plans, and long-term potential. Concerns include negative shareholder's equity, net income loss, and skepticism about future performance, while some users express confidence in Reddit's long-term prospects.
March 12, 2024 | 1:19 pm
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Reddit, Inc. is set for an IPO with a target valuation of $6.4 billion, aiming to raise $748 million. The community's mixed views reflect concerns over financials and optimism for future growth.
The mixed community sentiment and discussions around Reddit's financial health and future profitability plans could lead to volatility in the short term. However, the significant interest and engagement from the Reddit community could also drive initial demand for the IPO. The balance between skepticism and optimism among potential investors makes the short-term impact on RDDT's stock price uncertain.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100