Reddit stock goes live on first day on the stock exchange – NRK Urix – Foreign news and documentaries

Reddit users were instrumental in GameStop stock skyrocketing in 2021.

Members of the r/WallStreetBets forum came together to invest in GameStop, a stock that major hedge funds had bet heavily would fall in value.

On Thursday, Reddit itself shut down on the New York Stock Exchange Indicator RDT.

According to the financial website CNBC Shares rose as much as 70 percent in early trading.

– For regular savers, this is not something you should try to jump on, Nordea strategist Joachim Bernhardsen tells NRK.

Towards the sky

This is the first time a major social media outlet has gone public since Pinterest did the same in 2019, CNBC writes.

Reddit went public at $34, or just over 360 kroner per share.

At 19:29, Reddit stock cost $47.88, a jump of almost 41 percent. At its highest levels, the cost per share was $57.8, or 617 kroner.

“We did it, mom,” Alexis Ohanian, who co-founded Reddit, wrote X.

With a listing price of $34 per share, Reddit was valued at $6.5 billion before the New York stock market opened. This corresponds to more than NOK 69 billion.

Reuters wrote that there is uncertainty about whether Reddit will go public. According to the agency, Reddit is not viewed as a good place to place ads, which will be the company's main source of income.

– Very volatile

– Perhaps there are many who expected this IPO– One has to be quite “hot”, so to speak, as Joachim Bernhardsen says.

– It comes from the background of Reddit, but also from some of the times we live in as well. We see that many companies in social media are going very strong.

Bernhardsen points out that there are still a limited number of RDDT shares available, and that the company is, in a sense, “too small to count” compared to Facebook's Meta.

– This is something that would be very important volatile. Many will likely participate in the first round here, then sell relatively early. This suggests that you should wait a few days, at least, before you find a more suitable rental, Bernhardsen believes.

Allow users to invest

In connection with the launch, Reddit gave some of its most loyal users the opportunity to invest upfront.

-I hope they believe and support Reddit. But the goal is just to engage them in the trade, like any other professional investor, Reddit CEO Steve Huffman tells CNBC.

It is also common for major financial players to get the opportunity to buy into a company that goes public the night before its launch.

Among others, Sam Altman, head of artificial intelligence company OpenAI, is one of Reddit's largest contributors, according to Reddit. The New York Times.

Reddit was founded in 2005 by Steve Huffman, Aaron Swartz, and Alexis Ohanian. The online community allows users to post and discuss in various forums, such as the r/WallStreetBets mentioned above.