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Highlights
- Reddit Inc. shares surged 38% over their initial public offering price.
- Reddit's IPO is the first for a social media business in the previous four years.
- Reddit has grown its following on social media by diving into cryptocurrencies and NFTs.
Reddit has listed its shares on the New York Stock Exchange today with the stock price starting at $47 apiece. The company’s shares made a trading debut beyond the company’s expectations. The stock surged minutes after starting to trade making it a positive start to Reddit’s trading journey.
Reddit Shares Surge 38% After Trading Debut
Bloomberg reported that the social media business Reddit Inc. and its stockholders raised $748 million priced at the top of a marketed range, giving a strong signal that the window for US IPOs is reopening. As a result, Reddit Inc. shares surged 38% over their initial public offering price.
Why Was Reddit IPO Important?
Reddit’s IPO is the first for a social media business in the previous four years. When Pinterest filed for its IPO in 2019, it was the last social media platform to go public. The largest social media businesses are already having difficulty with a decline in ad revenue, which is lowering their market valuations. This will coincide with the public listing. The choice to go public will now put Reddit’s devoted user base to the test as well as the company’s ability to convince investors that it is a successful business.
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Reddit IPO Impact on Crypto and NFT
Reddit has grown its following on social media by diving into cryptocurrencies and NFTs. During the 2021 cryptocurrency bull run, Reddit NFTs gained popularity and startled the cryptocurrency industry. After the non-fungible tokens (NFTs) were auctioned off for millions of dollars, the cryptocurrency community took note. Very quickly, renowned individuals and businesses purchased these distinctive digital tokens for a variety of uses.
Because of the social media platform’s growth in the cryptocurrency space, investors are also amassing virtual currencies through it. One such cryptocurrency that was connected to Reddit was called Moons.
Reddit’s NFTs and digital tokens immediately drew platform users and aficionados, and they swiftly gained popularity compared to all other conventional websites. Customers were cautious about the platform’s profitability, nevertheless, since investors were apprehensive about the delayed IPO. Posts by various investors on the platform have been the driving force behind multiple “meme” stock explosions over the last three years. The company’s IPO may contribute to investor trust being restored in the event of a good market turn. This may cause the firm’s NFTs and cryptocurrency tokens to soar in value.
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