Posted 2/23/2024, 12:03:00 AM
Reddit Finally Goes Public After Years of Losses, Facing Risky Market for Money-Losing IPOs
- Reddit is finally going public after 5 years of consideration, but the timing poses risks as the IPO market has struggled recently, especially for unprofitable companies
- Reddit has never posted a profit, losing over $716 million since 2014, and projects continuing losses as it invests in growth
- Almost all of Reddit's revenue comes from advertising, but growth is slowing as companies cut back, presenting business risks
- Reddit was valued at $10 billion in 2021, but that valuation has likely dropped significantly based on private stock sales and public tech stock declines
- Reddit's IPO may indicate if the market has reopened for tech IPOs, or serve as a warning for other unprofitable startups to stay private