Reddit shares surged as much as 70% above their offering price on the social media platform’s first day of trading on Thursday.
The stock debuted on the New York Stock Exchange at $47 per share, above its IPO price of $34.
It added about 60% to trade above $53 within minutes of its debut and then gained as much as 70% more than its IPO price at about $58.
By mid-afternoon, the stock had retreated to trade about 38% higher than its IPO price at $47, valuing the company at about $7.4 billion.
Reddit’s IPO marks the first major social media company to go public since Pinterest’s debut in 2019.
Freedom Capital Markets chief global strategist Jay Woods said Reddit’s IPO on the heels of AI infrastructure firm Astera Labs’ impressive debut on Wednesday were positive signals for the IPO market.
“Astera Labs was priced above the range. Priced at $36, (the stock) opened at $52 and traded as high as $79 today,” Woods said.
“For the IPO market, the retail investors have an appetite. This is a trend we are going to continue to see.”
Founded in 2005, Reddit confidentially filed for the IPO in late 2021 but delayed the offering amid challenging market conditions and the weak performance of tech stocks.
In 2023, it achieved revenue of $804 million, up from $666.7 million a year earlier, and a net loss of $90.8 million, its IPO filing showed.
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