Ahead Of Reddit's Market Debut, Munster Expresses Uneasiness Over IPO Pricing: 'Grab The Popcorn, Throw Out The Fundamentals'
Portfolio Pulse from Shanthi Rexaline
Reddit, Inc. (NYSE:RDDT) is set to debut on Wall Street with its IPO priced at $34 per share. Gene Munster expressed concerns over the pricing, suggesting it overlooks fundamentals and is high compared to peers like Snap and Pinterest. Munster highlighted Reddit's smaller user base and modest AI revenue. Despite his skepticism, others like Daniel Ives from Wedbush see the IPO as a significant opportunity, especially with positive market sentiment following Federal Reserve's rate cut hints.
March 21, 2024 | 12:18 pm
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Reddit's IPO pricing at $34/share is seen as ambitious by Gene Munster, citing concerns over fundamentals and comparison with peers. However, positive market sentiment and potential for significant revenue growth could drive interest.
The IPO pricing of Reddit is considered high by some analysts due to its fundamentals and comparison with peers like Snap and Pinterest. However, the overall positive market sentiment and Reddit's potential for revenue growth, as highlighted by other analysts, could lead to increased investor interest and a positive short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100