Social media giant Reddit (NYSE:RDDT) skyrocketed by 30% on Monday as investors continued buying the stock following its IPO last week. Reddit’s shares closed at $59.80 on Monday. Shares were still on the rise in pre-market trading on Tuesday.
Through this IPO, Reddit and its existing investors have raised around $750 million. According to a CNBC report, Reddit offered a directed share program through which it reserved 8% of its shares for select users, moderators, insiders, and their acquaintances in its offering. This kind of model had also been used earlier by Rivian (NASDAQ:RIVN) and Airbnb (NASDAQ:ABNB).
According to the report, these preferred users earned “millions of dollars” as a group.
In other Reddit news, a Reddit shareholder and Plexo Capital’s founding managing partner, Lo Toney, told CNBC that he sees Reddit’s debut as a positive sign for both the company and the tech industry, indicating investor appetite for future IPOs. However, he suggested that more companies need to enter the market before declaring a trend. He noted that some startups had raised plenty of funds through private market financing and as a result, may not be in a hurry to go public.
What is Reddit’s Market Cap?
Reddit’s market capitalization currently stands at $9.5 billion after its debut on the New York Stock Exchange (NYSE). RDDT shares debuted at $34 last week and the stock has risen by 9.1% in the last few trading sessions following its IPO. So far, none of the Wall Street analysts have initiated coverage of the stock.
