Title: Reddit Completes IPO, Valued at $6.4 Billion, Focuses on Data and Advertising Growth

In a long-awaited move, popular online community platform Reddit completed its Initial Public Offering (IPO) on the New York Stock Exchange. The company, which initially targeted a valuation of $10 billion, ended up pricing its IPO at $34 per share, resulting in a $6.4 billion valuation. Reddit's stock began trading at $47 per share and quickly soared past $53.

Co-founder and CEO, Steve Huffman, emphasized that investors should view Reddit as a diverse platform with multiple paths to success rather than solely an AI play. While Reddit recently struck a $60 million deal to license its data for training Google's large language models (LLMs), the company is also aiming to strengthen its position in the advertising market.

Established in 2005 by Huffman and Alexis Ohanian, Reddit was later sold to Conde Nast for $10 million. After going through multiple leadership changes, Ohanian returned as executive chairman in 2014, followed by Huffman assuming the role of CEO in 2015. Under Huffman's leadership, Reddit has navigated contentious content moderation issues, capitalized on the meme stock uprising, and directed its focus towards advertising revenue.

Regarding profitability, Reddit has yet to turn a profit despite being in operation for nearly two decades. In 2020, the company reported a net loss of $90.8 million, although its sales increased by 21% to $804 million. Huffman expressed optimism about Reddit's trajectory, stating he likes the current trend. However, he declined to comment on whether the company would achieve profitability in 2024.

Reddit's IPO attracted attention from notable shareholders, including AI kingmaker Sam Altman and Chinese tech giant Tencent, who hold the fourth and second-largest stakes, respectively. Additionally, Reddit reserved 1.76 million shares for purchase by its user base, reflecting the platform's commitment to its community.

The company's prospectus notably excluded mentions of co-founder Alexis Ohanian, who departed in 2020, citing his desire to have his board seat filled by a diverse candidate.

Risks associated with the GameStop and AMC meme stock trading saga were acknowledged in Reddit's filing with the Securities and Exchange Commission (SEC). The company acknowledged its connection to the event, a phenomenon that saw Reddit users significantly impact the stock market.

As Reddit sets its sights on future growth, it aims to leverage its data licensing agreements with tech giants like Google to strengthen its financial position and expand its advertising reach. With a loyal user base of approximately 73 million daily active users, Reddit is primed to seize opportunities in the evolving digital landscape.