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Reddit has been around since the early days of social media. Here's why it's finally going public now

·1 min

Reddit, a well-established social media company, is preparing to go public on the New York Stock Exchange. This move is seen as a significant milestone for the nearly 20-year-old company. Reddit’s IPO could set a precedent for other companies considering going public. The funds raised through the IPO could fuel Reddit’s growth and expansion into new revenue streams, particularly in the artificial intelligence language model industry. However, Reddit faces challenges, as it has not yet turned a profit, and there is uncertainty about its future profitability. The company’s loyal users are being given the opportunity to buy IPO shares, which could potentially create volatility in the share price. The IPO market has been sluggish in recent years, with IPOs underperforming the S&P 500. Reddit’s IPO comes with a share price of $34, valuing the company at around $6 billion. Some analysts are skeptical about the company’s ability to monetize its platform without alienating its users. Nevertheless, there is potential for Reddit to grow further, particularly in international markets such as India. The company is exploring opportunities for monetization, including licensing user data for AI model training. However, there have been concerns from users and regulatory scrutiny regarding the selling of user data.