Reddit Finally Files For IPO

Reddit Finally Files For IPO

Reddit finally announces its plans to go public in a confidential filing to the SEC after months of investor speculation and rumors

Investors who have been longing to get a piece of the “front page of the internet” can finally stop wishing, as Reddit has announced it finally plans to go public. 

The message board site had been flirting with a public listing for a while now, and its confidential filing is the talk of Wall Street this morning.

A great opportunity?

Reddit is riding high on the back of some explosive early-year growth. The hype surrounding GameStop and other meme stocks in the notorious r/wallstreetbets subreddit saw retail investors spending their days glued to the site.

The company boasts 52 million daily active users as of October last year, a number that has only grown since. Reddit also announced a $10 billion valuation following a private funding round in August which saw the firm raise $700 million. According to reports, Reddit hopes to achieve a valuation of $15 billion by the time the IPO comes around.

For investors, this represents an opportunity to get involved in a powerful company that has stitched itself into the very fabric of the internet — it’s basically responsible for a whole new generation of investors. The underlying financials are no joke either, with Reddit reporting $100 million in advertising revenue during Q2 of this year, almost tripling revenue from the year-ago quarter.

The firm also made some shrewd hires in preparation for its impending public debut. Drew Vollero, the man hailed for guiding Snap through its public transition, came on board in March as the company’s first Chief Financial Officer.

While the timeline, pricing, and effectively every other detail remain shrouded in mystery following the confidential SEC filing, one thing we do know is that Reddit is poised to be one of the most intriguing IPOs of 2022.

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