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· Posted on
February 21, 2024

Reddit jumps on the meme stock craze with its own IPO...and prays that wallstreetbets will send it to the moon

Reddit has announced plans to IPO in March and it's hoping the same users who sent GameStop to the moon will help its share price fly away into the sunset.

What's the key learning?

  • While it's unknown what valuation Reddit will achieve, they were valued at $10 billion USD in 2021.
  • By transforming users into investors, companies aren’t just raising capital but they're also creating lifelong advocates for their products.
  • Using Reddit to push Reddit shares might be just what they need to drive anticipation of the IPO.

👉 Background: Reddit is the online forum that has become a huge source of news, content, and videos for its passionate community. And while it's not at the some size as some other social media behemoths (ahem Meta, TikTok and X), Reddit still has more than 57 million daily active users.

👉 What happened: Now, Reddit has announced plans to IPO in March. And, while it's unknown what valuation they'll achieve, they were valued at $10 billion USD in 2021.

👉 What else: Reddit will be hoping the same users who sent GameStop to the moon will help Reddit's share price fly away into the sunset.

What's the key learning?

💡By transforming users into investors, companies aren’t just raising capital but they're also creating lifelong advocates for their products.

💡It's fair to say Reddit users are not not familiar with taking investment advice from the Reddit platform. Remember r/wallstreetbets?

  • In 2021, it drove GameStop shares up 1,700%
  • It drove AMC shares up 300%
  • It drove Bed, Bath & Table shares up nearly 80%

💡Using Reddit to push Reddit shares might be just what they need to drive anticipation of the IPO. The hope is this will give Reddit users a sense of belonging and commitment to the company.

‍

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