Shares of Reddit increased by 48% during the debut trading on the New York Stock Exchange

During the first trading on the New York Stock Exchange, Reddit shares rose by 48%, reports Reuters.

The company priced its initial public offering (IPO) at $34 per share. At the beginning of trading, the value of the securities was $47, but at the close the share price reached $50.44.

According to the publication, this growth indicates that investors’ appetite for initial public offerings of promising but unprofitable companies may be returning.

In 2023, Reddit posted a net loss of $90.8 million. The company lured investors by positioning its content as a training ground for AI programs. Recently, it was reported that the platform has signed a relevant agreement with Google worth about $60 million per year.

As a reminder, Reddit has finally hosted an IPO, which it has been preparing for a long time. It offered 22 million shares and raised $748 million. Reddit shares started trading on the New York Stock Exchange under the ticker RDDT.