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Convincing debut on Wall Street for Reddit, the social media platform founded in 2005 that hosts thousands of online forums. The stock opened at $47, up 38% compared to $34 at the IPO. The company had marketed 22 million shares at a price between $31 and $34 each.
The Reddit ticker is “RDDT”. This is the first IPO for a social media company since Pinterest in 2019.
The euphoria pushed the stock up +65.65% to $56.32, shortly after its market debut. Before falling back to around +50%.
At its current price, Reddit has a market value of $8.2 billion based on outstanding shares listed in documents filed with the U.S. Securities and Exchange Commission. Including stock options and restricted share units, Reddit’s fully diluted valuation is approximately $10 billion. Some analysts, before the listing, argued that the company deserved a valuation of around $10 billion obtained in a 2021 financing round.