Is Reddit's IPO Another 'Moon Right Away' Story Like Rivian, Beyond Meat?
Portfolio Pulse from Surbhi Jain
Reddit Inc's upcoming IPO on March 21 is expected to be turbulent, with the IPO being four to five times oversubscribed and aiming for a $6.5 billion valuation, significantly lower than its last fundraising round. The sentiment among investors is divided, with some bullish due to oversubscription, while others are cautious, drawing parallels to past IPOs like Rivian and Beyond Meat, which saw initial surges followed by downturns. Concerns about Reddit's profitability and the impact of higher interest rates are leading some investors to consider purchasing puts.
March 18, 2024 | 3:48 pm
News sentiment analysis
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NEUTRAL IMPACT
Reddit's IPO is highly anticipated but faces skepticism due to its lower valuation compared to the last fundraising and concerns over profitability. The mixed sentiment could lead to initial volatility.
The anticipation and oversubscription suggest a potential initial surge, but skepticism and concerns about profitability and valuation imply risk, leading to a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Beyond Meat's IPO trajectory, similar to Rivian's, serves as a warning for Reddit's IPO, influencing investor expectations and sentiment.
Drawing parallels to Beyond Meat's IPO suggests investors are wary of potential post-IPO downturns, affecting sentiment towards upcoming IPOs.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Rivian's past IPO experience, which saw an initial surge followed by a downturn, is being used as a cautionary parallel to Reddit's upcoming IPO, potentially affecting investor sentiment.
The comparison to Rivian's IPO suggests caution among investors, potentially dampening enthusiasm for similar high-profile IPOs in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50