"American Sticker" Reddit became the leader of this quarter's tech IPO?
On Tuesday, Feb. 6, **, citing people familiar with the matter, revealed that Reddit plans to go public in March this year and disclosed its earnings ahead of schedule. According to the financial report, Reddit's operating income in 2023 will exceed $800 million, a year-on-year increase of more than 20%, but it has not achieved profitability for the whole year, and the adjusted EBITDA loss for the whole year is about $69 million.
Despite this, people familiar with the matter revealed that Reddit turned a profit in the fourth quarter, but the exact profit figure has not been disclosed. In terms of market cap valuation, Reddit has been advised to consider a valuation of at least $5 billion.
According to public information, Reddit is a social ** company based in San Francisco. Since its inception in 2005, Reddit has grown into a major social media platform with over 70 million daily active users (data as of October last year). Reddit is best known for its WallstreetBets forum.
The WallstreetBets forum gathers a large number of ** investorsThe forum has caused turmoil due to the collective purchase of "** concept stocks" such as GME, highlighting the influence of social media in the financial market. ("Concept stocks" are those that gain a lot of attention and buzz on social platforms, especially in specific forums on Reddit, which are often sought after by investors because of online pop culture rather than company fundamentals.) ）
Analysts believe that if Reddit goes ahead with its IPO as planned, it could become one of the first big tech companies to move towards an IPO this quarter. Over the past two years, IPO activity has continued to slow due to the sluggish macro environment and increasingly cautious investors. Capital markets are looking for signs of recovery in the IPO market. Reddit's IPO plans and upcoming public document disclosures have become an important window into the current state of the IPO market.
In addition to Reddit, tech companies listed this quarter are likely to include data storage company Rubrik and "AI unicorn" Astera Labs. IPOs of Reddit and other tech companies have an impact on overall investment market sentiment. A successful IPO is likely to boost investor confidence in the tech sector and emerging markets. Two years ago, Reddit made its first confidential IPO filing with the U.S. Securities and Exchange Commission (SEC), people familiar with the matter said. Now that the company is gearing up for an IPO, Reddit and its advisers expect to make its IPO documents public as soon as this month, which will put the company on track to list on the New York Stock Exchange in March.
Reddit's initial public offering (IPO) attracted participation from about 16 banks, led by Morgan Stanley and Goldman Sachs, which also included JPMorgan Chase, Bank of America and Citigroup. But Reddit and the financial institutions it works with remain silent about the details of the IPO.
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