Reddit’s IPO could introduce an ironic meme stock

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The Future. Reddit’s upcoming IPO has all the makings of a wild business story — the first social media company public offering in years, a user base that was at the center of the biggest short squeeze in recent memory, and the inclusion of the biggest name in AI. Expect Reddit’s stock price to be on a rollercoaster all year long.

User power
Reddit’s IPO at a potential $5 billion valuation could create some stock market drama.

  • The company is offering a portion of available shares to 75,000 of its top users at the same price as institutional investors.
  • That’s likely because it knows that one of the top subreddits on its platform, the infamous and influential r/WallStreetBets, was started with the mission of democratizing investing.
  • But Reddit’s IPO prospectus warned investors that the company’s ability to become the ultimate meme stock could make its share price extremely volatile.

Additionally, the potential for Reddit to become a big stock has another wrinkle — OpenAI CEO Sam Altman was revealed as one of the company’s three largest shareholders (he even has more voting power than CEO Steve Huffman), and Reddit said it’ll makes hundreds of millions of dollars from licensing to AI companies like OpenAI and Google.

We’ll have to see how much Reddit’s power users like that.

David Vendrell

Born and raised a stone’s-throw away from the Everglades, David left the Florida swamp for the California desert. Over-caffeinated, he stares at his computer too long either writing the TFP newsletter or screenplays. He is repped by Anonymous Content.


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