SNAP - Reddit: Sell The IPO Pop
2024-03-22 09:38:29 ET
Summary
- Reddit's IPO saw shares surge almost 50% despite pricing at the high end of its expected range.
- The company has seen strong growth in users and revenue, but is currently losing money and burning some cash.
- Thursday's surge puts the name at a significant price to sales valuation premium to its closest industry peers.
One of the biggest market headlines on Thursday was the IPO of Reddit ( RDDT ). The online community company saw its shares surge almost 50% for the session, even after pricing at $34 a share, the high end of its expected range. While there was plenty of green to celebrate on its first day, the valuation of this name is not something I'd get involved in currently....
Reddit: Sell The IPO Pop