Social media company Reddit surges after NYSE debut

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Shares of social media company Reddit soared nearly 50 percent on the New York Stock Exchange Thursday in a buoyant market debut that raised hopes about the IPO market.

Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange in New York on March 21, 2024. – Shares of Reddit opened at $47 on the New York Stock Exchange Thursday before vaulting even higher in a buoyant market debut. Near 1720 GMT, Reddit shares stood at $56.60, up around 67 percent from their initial public offering price of $34.

A few hours before the first trade, Chief Executive Steve Huffman told CNBC that Reddit was seeing “a lot of momentum” in the advertising market. San Francisco-based Reddit first filed for IPO in 2021, when the market was hot thanks to a COVID-linked growth boom for tech. But the attempt stalled as the internet economy cooled.

Following the lead of companies like Airbnb and Rivian, Reddit set aside about eight percent 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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