Unlock Your Wealthier Future Today
We've been selecting winning stocks for 10 years. Get your investing life on the fast track now with our completely free, high-performing stock.
Reddit IPO: Being Put On Hold For Now?
Social media giant Reddit disclosed plans to IPO in 2022 -- has the recent turn of events put the news on hold or will it still go ahead?
March 25, 2022

Maybe speculative IPO investing isn't exactly what the market needs right now, but what's going on with the Reddit IPO? 

It was expected to be just around the corner.

Return of the Meme.

Likely, the social media giant is waiting for the water to settle before jumping in. Sources reported Reddit is seeking a $15 billion valuation when it finally does arrive, a steep ask in the current environment where investors have lost their tolerance for tech and innovation.

Given that it's being advised by two of the largest investment banks in the world, Morgan Stanley and Goldman Sachs, it'll have a close advisory on the right capital-raise strategy before diving in. Reddit received $700 million in a private funding round just last September at a $10 billion valuation too, so there's really no rush.

But, the IPO is somewhere on the horizon, so how does Reddit stack up?

The company has 330 million MAUs, 15 million DAUs, and a 45/55 split between U.S. and international audiences. It makes money from three segments: 


  • Advertising
  • Subscriptions
  • Awards/virtual currency purchases

While average revenue per user is estimated to still be quite low compared to competitors -- estimated at $0.30 v.s. Meta's (Facebook) $7.89 -- advertising revenue grew 200% to $100 million in Reddit's second quarter last year.

Whether it's r/investing, r/woodkworking, or r/birdsarentreal, there's a subreddit for everyone, and in this, it created a platform that users love. It has little to no censorship constraints and doesn't track user data either, meaning the company probably hasn't seen revenue beaten down too much as a result of privacy updates from tech giants.

Given the current news cycle, I wouldn't be surprised if Reddit usage is at all-time highs, and personally, I'll be watching like a hawk for updates on one of the most highly-anticipated IPOs of the year.



The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.


Services

Content

Social

Company

Support

Resources


This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.