Reddit soared in its Wall Street debut as investors pushed the value of the company close to nine billion US dollars seconds after it began trading on the New York Stock Exchange.
The IPO will test the quirky company’s ability to overcome a nearly 20-year history coloured by uninterrupted losses, management turmoil and occasional user backlashes to build a sustainable business. The interest surrounding Reddit stems largely from a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries, as well as get recommendations from like-minded people.
Per the usual IPO custom, the remaining shares are expected to be bought primarily by mutual funds and other institutional investors betting Reddit is ready for prime time in finance. Reddit has never profited from its broad reach while piling up cumulative losses of 717 million US dollars.