Can Reddit Maintain User Support Amid Transition Into a Publicly Traded Company?

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Stocks Analysis by Investing.com (Alessandro Bergonzi) covering: GameStop Corp, NASDAQ Composite, Alphabet Inc Class C, Reddit Inc. Read Investing.com (Alessandro Bergonzi)'s latest article on Investing.com

Reddit's stock saw a rapid decline after its Wall Street debut, dropping nearly 30% in just three sessions before a partial rebound.

Just like the stock's seesaw action, Reddit's future, too, remains uncertain, with potential challenges ahead mirroring its tumultuous journey thus far.Reddit's Rollercoaster Journey: From Startup to IPO and Beyond As a result, the much-anticipated IPO didn't happen until March 2024, with a valuation of nearly $6.5 billion, significantly lower than in 2023.

Firstly, Reddit's unique listing approach, which reserves 8% of its shares for users and moderators, has raised eyebrows. This move exposes the company to potential volatility by placing a significant portion of its stock in the hands of non-professional investors. To achieve sustained growth, Reddit aims to expand beyond its predominantly English-speaking audience, with 90% of its content currently in English.

 

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