The US social media platform Reddit made a brilliant stock market debut this Thursday. The biggest tech IPO of the year so far has been extremely well received by investors. After the issue price of $34 per share was already at the upper end of the targeted range of $31 to $34, the price really accelerated at the start of trading.
The first price of the Reddit share was 47 dollars on Thursday – around 38 percent above the issue price. Shortly after the start of trading, it shot up to $57.80, which corresponded to an increase of 70 percent. At this level, Reddit temporarily had a market value of almost eleven billion dollars.
However, as the day progressed, the share price came back somewhat from its high. A good half hour before the close of trading on Wall Street, it is currently hovering around the $50 mark, but this still corresponds to a whopping premium of around 45 percent on the issue price. At this level, the social media group has a market capitalization of around $7.9 billion.
Other social media platforms are sometimes valued many times this on the stock market. Snap’s market cap is currently $18.5 billion, Pinterest’s is $23.4 billion. Industry heavyweight Meta even has a market value of around $1.3 trillion.
However, the hot stock market newcomer is not a bargain, as DER AKTIONÄR explained in a detailed analysis of the Reddit IPO in issue 11/2024. The recommendation to initially follow the turbulent IPO from the sidelines still stands.