Reddit, the social media website notorious for fueling meme stocks, is finally going to be making its stock market debut…
But could that be enough to make them profitable?
Will Reddit Become The Next Meme Stock?
After years of planning out its move, Reddit will make its Initial Public Offering (IPO) towards the end of March this year.
The app, known for its niche forums and up/down voting system, has wanted to launch its IPO for years but kept being stalled by market uncertainty.
When it launches, however, it will be the biggest social media offering since 2019 when Pinterest launched its IPO.
Despite being valued at $10 billion in 2021, Reddit has had a hard time becoming profitable. This is in part due to fewer of its users interacting with ads than other social media platforms.
NOW, REDDIT IS TRYING TO GET THE SAME MEME STOCK TREATMENT THAT ITS USERS GIVE OTHER COMPANIES.
Redditors Dominate The Stock Market
Meme stocks became synonymous with Reddit in 2021…
After Redditors fueled one of the most infamous short squeezes in Wall Street history.
Frequenters of the r/WallStreetBets subreddit were able to inflate Gamestop’s stock price from $6 per share to over $500. After this trend had calmed down, meme stock enthusiasts repeated the process with AMC Theaters and Bed Bath And Beyond stocks.
NOW, REDDIT’S IPO RELEASE WILL BE A MAJOR TEST TO DETERMINE THE WILLINGNESS OF THESE USERS TO FUEL THE COMPANY’S INITIAL LAUNCH.
Meme stock traders are almost completely unpredictable. Reddit counting on their audience to be the foundation of their success could be a huge risk…
But when it comes to trading…
Huge risks might lead to huge rewards.
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