Internet
Online platform Reddit is pushing ahead with stock market plans
Reddit increased sales last year from 666.7 to 804 million dollars (743 million euros). photo
© Tali Arbel/AP/dpa
Reddit is the first online platform to go public in years. Unusual: Some particularly active users should also be able to buy shares.
Reddit allows users to join online groups based on their interests. In the last quarter, the platform averaged 73.1 million daily users. About half of them came from the USA. Registered US users spent an average of 25 to 30 minutes per day on Reddit, it was reported. With regard to the advertising industry, the service emphasizes that many of them cannot be found on other online services. Almost a third of Reddit’s US users are not active on Facebook, 73 percent are not active on Snapchat and 53 percent are not active on Elon Musk’s Twitter successor X.
Particularly active users are allowed to buy stocks
Reddit will also allow some particularly active users to buy shares in the IPO – which is unusual. Unlike many other investors, there will be no obligation for them to hold their securities for a specific period of time before selling them. In the current version of the stock exchange prospectus there was no information about what proportion of the shares for sale should go to users.
What is known so far is that some users and moderators of Reddit’s online groups will receive an offer to participate in the IPO. The shares are then allocated according to the so-called “karma” rating, which reflects the reputation and activity of users on the platform.
Users responsible for price fluctuations at Gamestop
In the usual risk warnings in the prospectus, Reddit also noted that user participation could lead to major price fluctuations after the IPO. Users on the platform formed the movement in 2021, which invested in shares of some companies doubted by Wall Street, such as the video game retail chain Gamestop, thereby causing prices to rise.
Reddit increased sales last year from 666.7 to 804 million dollars (743 million euros). The loss fell from $158.6 million to $90.8 million. Reddit initially did not provide any information about the target valuation or volume of the share placement. According to information from the financial service Bloomberg, Reddit was recommended a valuation of around five billion dollars.