Reddit, often dubbed the “front page of the internet,” is about to make its debut on the New York Stock Exchange, marking a significant moment for the social-media platform founded in 2005 by Steve Huffman and Alexis Ohanian.

Reddit’s Early Days

Created by college roommates Huffman and Ohanian, Reddit aimed to establish itself as a social platform in the era of Facebook’s rise to prominence. With guidance from Silicon Valley investor Paul Graham and the addition of computer programmer Aaron Swartz, Reddit began to gain traction by offering a unique take on news aggregation.

Evolution and Challenges

The introduction of subreddits in 2008 marked a turning point, allowing communities to form around specific interests. However, Reddit’s commitment to anonymity has led to a reputation for harboring controversial content, challenging its position in the social media landscape.

Path to Profitability

Despite ownership changes and struggles with profitability, Reddit is now poised to prove skeptics wrong. With its IPO priced at $34 per share, valuing the company at $6.4 billion, Reddit aims to secure investor confidence and demonstrate its potential for growth.

Financial Performance

While Reddit’s daily active user base of 73.1 million pales in comparison to giants like Facebook and Twitter, its revenue growth of 21% in 2023 indicates progress. Despite ongoing losses, investor interest remains high, with the IPO reportedly oversubscribed.

Focus on AI and Monetization

A significant portion of Reddit’s revenue is invested in research and development, particularly in artificial intelligence (AI). By positioning itself as a key player in the AI landscape, Reddit aims to capitalize on opportunities for monetization, such as licensing deals with tech giants like Google.

Implications of the IPO

With plans to list 22 million shares and raise $750 million, Reddit’s IPO represents an opportunity for both institutional investors and loyal Redditors to participate in its future. As Reddit goes public, it is poised to increase its visibility and solidify its position as a cornerstone of the internet.