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Reddit: Return Of The Junk Stock IPO

forbes.com · 2,963 words · saved by 1 readers

London, UK - July 31, 2018: The buttons of the app Reddit, surrounded by Pinterest, Whatsapp, and ... [+] Reddit, (RDDT), should start trading as a newly public company sometime in March. At the reported valuation of $5 billion or higher, Reddit earns an Unattractive Stock Rating. While Reddit’s expected $5 billion valuation is half of its $10 billion private market valuation seen in 2021 when interest rates were zero and money was cheap, it remains much too high. Reddit reminds me of the fast-growing, but highly unprofitable IPOs in 2021. Sure, Reddit birthed some of the most volatile meme stocks through the WallStreetBets subreddit, but the company has never been profitable and should not be a publicly traded company. Reddit’s IPO marks the return of the junk IPO. I think the company may never monetize its platform without angering its users and the entire premise of Reddit is user-generated content. This business model is inescapably built on a catch-22: make money or please users.

Today’s Stocks Money Markets Reddit: Return Of The Junk Stock IPO By David Trainer , Contributor. Forbes contributors publish independent expert analyses and insights. #1 stock picker for 51 straight months on SumZero. AI is my edge. for Great Speculations Follow Author Mar 06, 2024, 03:30pm EST This article is more than 2 years old. London, UK - July 31, 2018: The buttons of the app Reddit, surrounded by Pinterest, Whatsapp, and other apps on the screen of an iPhone. getty Reddit, (RDDT), should start trading as a newly public company sometime in March. At the reported valuation of $5 billion

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