6Mo·

+++ Reddit IPO - Everything you need to know+++


$Reddit was founded 18 years ago and the IPO is expected to raise a valuation of 6.4 billion USD and thus 22 million shares in a price range of $31 - $34 USD.


Investors want to sell 6.7 million shares, as well as Reddit (1.76 million shares), which is already leading to high volatility at the beginning.


Through this IPO, Reddit manages to generate new revenue of USD 400 million, which, with the cash balance of USD 450 million, leads to a total stock of USD 850 million, which keeps Reddit alive for 8 years (annual loss of USD 100 million)


Reddit has had problems with monetization for years compared to $META (+3,24 %) where the ARPU (average revenue per user) is 13 and Reddit is at 3, minimally above $SNAP (+3,32 %)


The valuation is also not "favorable" we are at a PS ratio of 7-8x in comparison (Meta - 9 PS ratio / Pinterest 7.5 and SNAP 3.9)


If you want to see more information about Reddit, watch my video: https://www.youtube.com/watch?v=zikSSdonuuU

Will you buy Reddit stock? Looking forward to an exciting discussion!


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7 Commentaires

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That's not all I want to know at all. I want to know if I have to go long or short to make a truckload of money
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