The title of this article may have been a little misleading…
There have been a LOT of IPOs that haven’t stunk up the place.
However…
Recently, anything social media-related has seemed to fall on the deaf ears of our beloved markets.
You wouldn’t think that would be the case – especially seeing as how so many public social media companies have become cash cows for both the company and its investors…
But I think that trepidation is generational – the Millennials and Gen Y’s will have no problem pulling the trigger on these types of investments…
But Baby Boomers and Gen Xrs will be a bit more skeptical.
It’s a shame too…
But one of the recent social media IPOs looks to hold a lot of promise.
Is it a sign of things to come?
Or was this just an anomaly?
Let’s take a closer look and find out…
Have you already guessed which company we’re talking about?
No?
Well, in case you haven’t been around a computer or newspaper over the past week – that company is Reddit (RDDT).
Reddit is a social media platform that’s basically a digital Wild West of memes and debates – chances are – if you’ve seen a meme on Instagram or Facebook (META) then it most likely started on Reddit.
Well, Reddit (and those who jumped on early) just hit the jackpot with its Initial Public Offering (IPO).
That’s right – it has officially become the darling of the Wall Street ball.
Reddit, the corner of the internet where cat photos meet existential debates – has just thrown the biggest party Wall Street has seen in a while.
It has gone public – and it’s like watching the nerd at school suddenly become the prom king.
Why is it the toast of the town?
Well, Reddit’s stock was initially priced at a humble $34…
Which is why everybody and their grandmother freaked out when share prices soared right past that $34 all the way up past $50.
Giving Reddit a value of a whopping $9.5 billion.
Imagine that! It’s like your favorite indie band suddenly topping the Billboard charts…
And in a heartwarming twist, the platform’s dedicated users – the Redditors – were given a golden ticket to join this financial rollercoaster alongside the suits and ties of Wall Street.
Even better…
Reddit’s stock market debut doesn’t seem to be just a flash in the pan…
It signals that the US IPO market might be shaking off its cobwebs and getting back into the groove – because it wasn’t just Reddit strutting its stuff and making a mint…
Astera Labs (ALAB) also took a bow on the public stage – with its stock jumping a stunning 70%.
But remember, the stock market is like a high school romance – intense and unpredictable.
Reddit’s stock got a bit of a reality check come Friday – and despite its newfound fame – it’s still truing to figure out how to actually turn a profit.
It already seems to be getting back on the good foot – as prices opened Monday to a huge surge…
Which may turn out to be even bigger – seeing as it has been cozying up with Google (GOOG) – promising to feed data to Alphabet’s AI systems.
Of course, Reddit will always have the “misinformation” monkey on its back – seeing as you don’t need credentials to post on the site…
And while this could turn some investors off – so far – everybody still seems bullish about the market.
Most are betting that the stock market will be sunbathing in the green zone a year from now…
And they’re keen to keep splashing cash – especially on tech stocks.
That said…
Is Reddit a profit opportunity?
Well, that all depends on the data now, doesn’t it? Members of GorillaTrades would know before many – as our trading matrix is only triggered by data and real numbers.
That’s the only way to know if something is a profit play or not…
If you’re using any other method other than numbers and data – you’re doing yourself a disservice.
We’d love to show you how it works – but it’s better to see from the inside.
That’s why I’m inviting you to become a member of GorillaTrades today…
We’ve helped our members get the chance to make an incredible amount of money – and we’d love to do the same for you.
If not – we understand…
But keep your eye on the IPO markets – it could be something that’s heating up!
“I think there’s a gigantic generation gap in terms of how people understand the Internet and how much they think technology is an important factor in social change.” – Alex Steffen