Sandisk Stock Soars After Blowout Earnings and AI-Driven Outlook 
US Judge Rejects $2.36B Penalty Bid Against Google in Privacy Data Case 
Elon Musk’s Empire: SpaceX, Tesla, and xAI Merger Talks Spark Investor Debate 
Bob Iger Plans Early Exit as Disney Board Prepares CEO Succession Vote 
Boeing Secures New Labor Contract With Former Spirit AeroSystems Employees 
Toyota Retains Global Auto Sales Crown in 2025 With Record 11.3 Million Vehicles Sold 
Tesla Q4 Earnings Beat Expectations as Company Accelerates Shift Toward AI and Robotics 
Apple Earnings Beat Expectations as iPhone Sales Surge to Four-Year High 
Trump Threatens Aircraft Tariffs as U.S.-Canada Jet Certification Dispute Escalates 
Pentagon and Anthropic Clash Over AI Safeguards in National Security Use 
SpaceX Reports $8 Billion Profit as IPO Plans and Starlink Growth Fuel Valuation Buzz 
OpenAI Reportedly Eyes Late-2026 IPO Amid Rising Competition and Massive Funding Needs 
Saks Global to End Saks on Amazon Partnership Amid Bankruptcy Restructuring 
SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom 
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations 
Microsoft AI Spending Surge Sparks Investor Jitters Despite Solid Azure Growth 
American Airlines Plans Return to Venezuela Flights After U.S. Lifts Ban 
Social media platform Reddit's shares surged 48% on their first trading day in New York. This indicated a renewed interest from investors in initial public offerings (IPOs) of promising yet loss-making companies.
Established in 2005, Reddit has not recorded an annual profit but has managed to captivate investors by positioning its content as a training ground for artificial intelligence (AI) programs. In February, as reported by Reuters, Reddit secured a data licensing deal with Google valued at around US$60 million annually.
While Reddit heavily relies on advertising for revenue, it emphasized the growth potential of AI during its IPO marketing roadshow. Recently, the company revealed that the US Federal Trade Commission is scrutinizing its AI data licensing agreements.
Reddit's Strong Market Debut
According to the Straits Times, Reddit shares commenced trading at US$47 on the New York Stock Exchange on March 21, exceeding the IPO price of US$34. The company's market valuation reached US$6.4 billion, with Reddit and its selling shareholders raising US$748 million.
The successful IPO of Reddit, previously valued at US$10 billion in a private fund-raising round in 2021, suggests that the company did not need to compromise its valuation significantly to launch the IPO successfully.
Expert Analysis of Reddit's IPO
Assistant Professor Josh White from Vanderbilt University highlighted that investors were willing to overlook Reddit's losses due to its growth potential. This trend in the tech market has not been observed for at least three years.
Reddit's entry into the public market faced delays due to market uncertainties caused by Russia's conflict in Ukraine and the Federal Reserve's interest rate adjustments. The company confidentially filed for an IPO in December 2021 but had to postpone its plans amid the market turbulence.
Reflecting on Reddit's market debut, industry analysts underscore the importance of Reddit's loyal and active user base as a fundamental asset driving its valuation. The platform's unique position in the social media landscape, characterized by its community-driven content and deep engagement in niche interest groups, sets it apart from competitors.
Photo: Reddit Newsroom
