Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Instagram lets you share Spotify songs with your story to your sound

June 30, 2025

At every stage of TechCrunch, Charles Hudson tells us what investors really see

June 30, 2025

Baidu’s AI Breakthrough Hasn’t Been Priced In — Why BIDU Could Hit $120 Soon

June 30, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    Instagram lets you share Spotify songs with your story to your sound

    June 30, 2025

    The best iPad app to unleash and explore your creativity

    June 30, 2025

    Privacy-centric app maker Proton sues Apple over anti-competitive practices and charges alleged

    June 30, 2025

    Google is adopting AI in classrooms, including new Gemini tools for educators and chatbots for students

    June 30, 2025

    The former meta engineer has built AI tools to plan every detail of a trip

    June 30, 2025
  • Crypto

    Vitalik Buterin reserves for Sam Altman's global project

    June 28, 2025

    Calci will close a $185 million round as rival Polymeruk reportedly seeks $200 million

    June 25, 2025

    Stablecoin Evangelist: Katie Haun's Battle of Digital Dollars

    June 22, 2025

    Hackers steal and destroy millions of Iran's biggest crypto exchanges

    June 18, 2025

    Unique, a new social media app

    June 17, 2025
  • Security

    US government overthrows North Korea's major “workers” management

    June 30, 2025

    Mexican drug cartel hackers spy on FBI officials' phones to track and kill informants, the report says

    June 30, 2025

    FBI, cybersecurity firms say prolific hacking crews are currently targeting airlines and transportation sectors

    June 28, 2025

    Prolific cybercrime gangs currently targeting the airline and transportation sector

    June 27, 2025

    US and French authorities confirm arrest of a violation form hacker

    June 26, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    At every stage of TechCrunch, Charles Hudson tells us what investors really see

    June 30, 2025

    From $5 to Financial Empowerment: Why Stash co-founder Brandon Krieg is a must-see for TechCrunch All Stage 2025

    June 30, 2025

    A comprehensive list of 2025 tech layoffs

    June 30, 2025

    How to prepare for a second semester salary increase now live in 2025

    June 30, 2025

    Tiffany is lucky to have won a VCS at TC at every stage.

    June 30, 2025
TechBrunchTechBrunch

Reddit's IPO begins and stock price soars 60% within minutes

TechBrunchBy TechBrunchMarch 21, 20244 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


Shares of social forum giant Reddit opened at $47 per share on Thursday, but quickly soared to around $55, up about 60% from its IPO price of $34 per share. It recovered to stabilize at around $50 per share. The company had indicated a target range of $31 to $34 per share for its public market debut, but ultimately settled on the higher end of that range. The highest stock price at the time of this writing was $57.80, but it is currently a few dollars below that price and down a few percentage points.

With $804 million in revenue in 2023, Reddit is still unprofitable (its net loss last year was more than $90 million), but compared to its closest peer social media companies like Snap, Reddit has a lower revenue multiple. It may appear that the stock is trading at the upper limit of . But the company has an important AI story to tell that could get investors excited about its future. Earlier this year, Reddit sold a contract worth $203 million to an AI company for access to its data. And Reddit is a treasure trove of exactly the kind of training data his AI company needs, always hungry for large-scale language models, which bodes well for being part of the serious growth of the business in the future. .

It's worth noting that the FTC has opened an investigation into Reddit's plans to license user data to train AI models. If the company's AI strategy sparks investor interest, it will be interesting to see how the stock continues to perform as the investigation continues to unfold.

Another victory for the technology industry

Reddit's strong IPO debut on the heels of Astera's blockbuster initial public offering could shake up the current market dynamics and narrative surrounding public offerings. Few tech companies have tried the public markets as their valuations have been compressed since the bursting of the 2021-era asset bubble. This is partly due to discrepancies in the evaluations of private and public companies.

But the strong performance of both of the year's first two tech IPOs has eroded the argument that waiting is the best course of action for healthy private market tech companies. With interest rate cuts expected in the second half of this year, some companies may hold off a little longer, but Astera and Reddit are a boon for tech companies that are growing and can probably turn a profit every quarter, if not a year. is based on showing that it is warm and says something about AI in its prospectus.

However, early trading results do not necessarily lead to trouble-free public market life. Many of the tech IPOs of the 2021 era have lost value since their early buzzy debuts. Still, a chart that is pointing up is more bullish than one that is not. This week's doubleheader of IPO winners will see more offers announced from tech companies on the sidelines, including well-known IPO candidates like Turo that filed publicly and those that filed privately like Circle. This includes both corporations and just major corporations. Venture investors who are old enough to do so and didn't put money into either Astera or Reddit may have reason to admire it.

Will the IPO window really open?

If an IPO launches under current market conditions, there is reason to expect those conditions to hold or even improve as the year progresses. The Nasdaq Composite Index hit a new 52-week high today, with the index peaking at a higher all-time high than in 2021. That means tech stocks are more valuable than ever before, by some metrics.

Secondary investors recently told TechCrunch that the success of Reddit's IPO is not enough to tell whether the IPO market will return to life in 2024. But given Astera Lab's impressive performance yesterday and Reddit's strong performance today, it could be even more lively. This year's IPO market has been bigger than many expected.

You can expect it.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

At every stage of TechCrunch, Charles Hudson tells us what investors really see

June 30, 2025

From $5 to Financial Empowerment: Why Stash co-founder Brandon Krieg is a must-see for TechCrunch All Stage 2025

June 30, 2025

A comprehensive list of 2025 tech layoffs

June 30, 2025

How to prepare for a second semester salary increase now live in 2025

June 30, 2025

Tiffany is lucky to have won a VCS at TC at every stage.

June 30, 2025

Kristen Craft brings fresh fundraising strategies to every stage

June 30, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

Instagram lets you share Spotify songs with your story to your sound

June 30, 2025

At every stage of TechCrunch, Charles Hudson tells us what investors really see

June 30, 2025

Baidu’s AI Breakthrough Hasn’t Been Priced In — Why BIDU Could Hit $120 Soon

June 30, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.