Reddit delivers $936 million windfall for 38-year-old AI king

Reddit’s stock soared in its Wall Street debut as investors pushed the value of the company close to $US9 billion seconds after it began trading on the New York Stock Exchange.

Reddit’s IPO will test the quirky company’s ability to overcome a nearly 20-year history coloured by uninterrupted losses, management turmoil and user backlashes to build a sustainable business. By the tech industry’s standards, Reddit remains extraordinarily small for a company that has been around as long as it has. Thursday’s opening debut valuation of $US9 billion, for example, is still far below the $US1.2 trillion market value boasted by Meta Platforms — whose biggest social media service Facebook was started just 18 months earlier than Reddit.

Reddit outlined a strategy in its filing calling for even more ad sales on a service that it believes companies will be a powerful marketing magnet because so many people search for product recommendations there.

Source: Tech Daily Report (techdailyreport.net)

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