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HomeFinance NewsReddit sets IPO price at $34 per share, sources report.

Reddit sets IPO price at $34 per share, sources report.

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Reddit is making waves with its upcoming IPO, pricing its shares at $34 each, the high end of the expected range. This move values the company at $6.5 billion, showing strong investor interest in the popular online forum platform. The IPO marks one of the few venture-backed tech deals in recent years and is set to be the first major social media company to go public since Pinterest in 2019.

Despite its private market valuation of $10 billion in 2021, Reddit is now facing a more challenging market as inflation and rising interest rates have led to a shift away from risky assets. This has prompted startups to focus on profitability over growth, reflected in Reddit’s decision to go public at a lower valuation. The company’s core business in online advertising faces stiff competition from industry giants like Alphabet and Meta, but it managed to increase revenue by 20% last year.

Investors are closely watching Reddit’s public market debut under the ticker symbol “RDDT,” amidst a backdrop of market uncertainty. Reddit’s move to go public at a slightly lower valuation signals a strategic decision to adapt to changing market conditions and investor preferences. With its increasing revenue and improved financial performance, Reddit’s IPO is set to test the waters of the current economic landscape and could have ripple effects across the tech industry.

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