https://techcrunch.com/2024/03/21/reddits-ipo-shares-soaring/

Shares of social forum giant Reddit opened Thursday at $47 per share, then quickly soared to around $55, up about 60% in heavy volume from its IPO price of $34 per share. It bounced around before stabilizing at around $50 a share.  The company had indicated a target range of $31 to $34 per share in the run-up to its public-market debut, eventually settling on the top-end of that interval. The peak share price as of the writing of this post was $57.80, though prices are, at the moment, a couple of dollars cooler, and a few percentage points down, from that price.

With $804.0 million in 2023 revenue, and still unprofitable (with net losses of more than $90 million last year), Reddit may appear to be trading on the high end of its revenue multiple compared to the nearest comparable social media companies like Snap. But it has a significant AI story to tell that could excite investors about its future. Reddit sold $203 million worth of contracts to AI companies for access to its data earlier this year. And Reddit is a treasure trove of exactly the kind of training data that always-hungry, large language model AI companies need, which bodes well for this to become a serious growth part of its future business.