NEW YORK — Shares of social media company Reddit soared nearly 50 per cent on the New York Stock Exchange on Thursday in a buoyant market debut that raised hopes about the IPO market.NEW YORK — Shares of social media company Reddit soared nearly 50 per cent on the New York Stock Exchange on Thursday in a buoyant market debut that raised hopes about the IPO market.
Market watchers were not sure what to expect from Thursday's start given Reddit's record of annual losses and scepticism about potential growth in advertising revenues — which the company has described as a key area of promise. Thursday's trading performance suggested such arguments found resonance, at least initially, despite lingering questions about the company with a record of financial losses.The entry of Reddit comes on the heels of a big slowdown in tech IPOs since the US Federal Reserve started hiking interest rates.
Reddit — unlike Facebook or X, formerly Twitter — is siloed into about 100,000 subject-focused chatrooms known as subreddits, making it more specialised and a place where posts are less prone to going viral. Following the lead of companies like Airbnb and Rivian, Reddit set aside about 8 per cent of the IPO shares for moderators and top users, known as"Redditors".There are a lot of questions on whether Reddit will be a successful business and the company has never turned a profit in its two decades of existence.
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