On Thursday, the self-declared ‘frontpage of the internet’ went public.
Reddit, launched in 2005, operates as a social media platform reminiscent of traditional discussion forums. It's structured around numerous sub-communities, known as 'subreddits,' each focused on specific interests, hobbies, or fanbases.
With an average of 73 million daily active users engaging in over 100,000 subreddits, it has become a bustling hub of internet culture and discussion. As of February 2024, Reddit has secured its position as the 15th most visited website worldwide, positioning itself just below TikTok and ahead of notable sites like Netflix, LinkedIn, and Live.com, the latter of which is known for hosting Outlook email services.
Despite its popularity, Reddit has always faced challenges in becoming profitable.
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However, this may very well be changing with the company’s IPO.
The social media platform had originally priced its IPO at $34 a share, allowing a large group of its most dedicated and active users to buy shares in the company through a Directed Share Program (DSP).
Next, on Thursday afternoon, Reddit debuted at $47 a share, peaking at $57.80 before closing at $50.44—a 48% increase, according to AP News.
The company had had the goal of achieving a $6.5 billion valuation. It opened to a valuation of $9 billion.