2024-03-21 11:20:17 ET
Summary
- Reddit, Inc. is set to begin trading with an expected valuation of around $6.5 billion.
- The company has solid revenue growth, lots of operational leverage, and is reasonably valued, but the company is still unprofitable, even after 18 years.
- We expect that public investors will strongly pressure management to push monetization, which could bring a massive opportunity for shareholders.
- Any price beneath $11 billion seems reasonable to us, for long-term conviction investors looking to get involved.
- We rate the Reddit, Inc. IPO and stock as a "Strong Buy."
It's been a long, long time since we've come across an opportunity like Reddit, Inc. ( RDDT ).
Set to IPO today , Thursday March 21st, with an expected valuation of around $6.5 billion, the online social platform is simultaneously very cheap or ludicrously expensive, depending on your view....
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For further details see:
Reddit: The Ultimate Boom Or Bust Stock