Users Respond To Reddit’s IPO Invitation With A Collective ‘Meh’

It’s been a bit of a rough patch lately for Reddit, the social networking forum that saw an internal protest in response to its decision to raise the cost for third-party apps accessing its content. And while at least some of that bad blood appears to be resolved, users (aka redditors) aren’t necessarily leaping at the chance to fund the company’s next big thing.

Going public

Reddit is planning to become the latest social media platform to be listed on the New York Stock Exchange and offered 8% of its shares to some high-profile redditors on the site.

But instead of reacting with enthusiasm over the chance to get in on the ground floor of what Reddit predicts will result in a $6.4 billion valuation, many users took a pretty pessimistic view of the entire ordeal.

The initial public offering was big news on popular Wall Street-related subreddits, but most of the commentary predicted a stock market flop.

One user planned to “throw in a few grand to buy shares then dump it after a day or two” while another described Reddit’s move as a ploy “to extract any remaining value in the company and cash out.”

Reddit’s rationale

A few users were at least somewhat optimistic … and if we’re being honest, Reddit comments do have a tendency to lean toward cynicism. So what does the company have to say about its IPO?

In its filing with the Securities and Exchange Commission, the platform touted its perceived value as a source of training for artificial intelligence engines as a reason it predicts Wall Street success. Its revenue was up and losses were down last year, which also looks good to investors.

But with far fewer users than many social media rivals, redditors aren’t the only ones who are skeptical.

Chris Agee March 21st, 2024

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